TEC 401

Session Five

Human Factors In Technology

Joseph Lewis Aguirre

Characteristics
Characteristics of
of Technology-Driven
Technology-Driven Change
Change
with
with Regard
Regard to
to The
The Implementation
Implementation of
of
Technology.
Technology.

Human resources.
Functional resources.
Technological capability.
Organizational abilities.

Change Management

Joseph Lewis Aguirre

Managing
Managing Resistance
Resistance to
to Technological
Technological
Change
Change
Process re-engineering and restructuring.
Innovating application of goods and
services.
Managing employees as a vital element in
the value chain.
Achieving and maintaining customer
loyalty.

Internal
Internal or
or External
External Focus
Focus
An externally focused company can be difficult to identify because it
uses standard problem-solving strategies, supply chain processes
and product delivery models.
What separates externally focused companies from internally focused
ones is the use of outside data as key inputs to these models.
For example, externally focused companies look at non-traditional
competitors because they might re-define the customer problem.
- Traditionally, McDonald's looked at Burger King, KFC, and Taco
Bell as competitors.
- But if the problem is redefined as a need for quick, low-cost food
and drinks, a new set of competitors come into play such as
convenience stores, frozen meals at grocery stores and gas stations

Internal
Internal Focus
Focus Time
Time Spent
Spent Outside
Outside
If the senior team spends the majority of its time solving operational problems, the
company is internally focused. Internally focused companies also avoid and deny
negative feedback. It's tough to uncover the truth; and once a company decides to
venture outside, the chance of hearing negative feedback is high. The risk in
ignoring negative information threatens the survival of the organization.
Example of an externally focused executive is Jack Welch, former CEO and chairman
of General Electric.
According to David Jones, chairman and CEO of Wallace Computer Services Inc.,
routine contact by senior level executives from all functional disciplines has been
critical for winning contracts without significant price concessions. Mr Jones
himself attends major account presentations as just one more person on the
account team.

Business
Business Drivers
Drivers
Customer problems or business processes? If business processes drive the business, the
organization is internally focused.
A company is externally focused if it understands its rules need to be flexible so that front
line staff can immediately and effectively solve customer's problems - without a dozen
supervisors' signatures.
How a company handles customer returns and complaints provides great clues about the
focus of an organization. For example, Nordstrom's has a legendary external focus
with virtually no restrictions on customer returns.
Home Depot and CDW (Computer Discount Warehouse) exhibit their external focus by
employing knowledgeable staff who are willing to answer endless customer questions.
Internally focused organizations keep everyone appraised of each process with timeconsuming meetings. Walk around any internally focused corporate headquarters and
observe the number of people in meetings or the number of conference rooms
available. Then stop and think about the extent to which internal meetings are solving
customer problems or producing profits.
To determine who owns the business processes, ask these two questions:
1. Are business processes too complicated to document?
2. How many times during a month do key processes go unexecuted because someone
is absent?

Internal
Internal Focus
Focus Risks
Risks
Extinction:
For example, consider a company that uses only one supplier of a key raw
material or services or two customers that contribute 80 percent of total
revenue.
US auto industry in the 1980s when overseas companies introduced products
that were superior in quality, more durable and less expensive. The US auto
industry failed to listen to customers' quality and fuel efficiency concerns until
consumers had an alternative buying source - foreign car manufacturers that
addressed these concerns with a value price.
The auto industry changed again when gas prices started going north of 50
cents a gallon, and customers wanted fuel-efficient cars rather than large
sedans. Obviously, that didn't last. Trends have reversed yet again as extra
large SUVs remain in high demand. Being ahead of the market as these
changes occur is the way to profitability. It's not good enough to watch the
market trends as they play out.

Planning
Planning Management
Management of
of Personal
Personal and
and
Organizational
Organizational Change
Change
Business description, objectives, and
technological environment.
Personal and organizational responsibilities for
moral and ethical use of technology.
Current and potential uses of technology for the
global success of business objectives.
Human factors within the enterprise that utilize
current and emerging technology more effectively.

Knowledge
Knowledge Based
Based Strategic
Strategic Change
Change
Concepts of organizational knowledge
Strategic change as the process of
knowledge creation
A case study
Discussing the case
Conclusion

Organizational
Organizational Knowledge
Knowledge
What is knowledge?
Knowledge is more than processed data, it results the
processing or sense making of information by
intellects.
Knowledge consists of phenomena that amounts to
more than just facts, it also consists of beliefs and
values acquired through the meaningfully organized
accumulation of information through experience,
communication and inference

Knowledge
Knowledge Based
Based Economy
Economy
Knowledge-based economy is an economy
in which knowledge is the most important
productive factor
Knowledge-based company (enterprise) is
a company in which knowledge is the most
important productive factor

Knowledge
Knowledge and
and Organizational
Organizational Culture
Culture
Organizational culture: set of assumption and
beliefs held in common and by the organizations
members
Values and beliefs are examples of tacit knowledge
-- culture is a stock of knowledge that has been
codified into patterns of recipes for handling
situations, then very often with time and routine
they become tacit and taken for granted and forms
the schemes which drive action

Change
Change Management
Management is
is itit possible?
possible?
Managers want to transform their organizations on
a planned basis
70% failure rate for organizational change
initiatives in general
Increasingly the feasibility of managing change
is being questioned
Change is about issuing objectives and
instructions and explaining to individuals how
need to change

Change
Change Management
Management is
is itit possible?
possible?

For change to occur in organizations, the

routines and their associated meanings have
to evolve
Thus the strategic change can be identified
as the process of new knowledge creation
This approach can be defined as
knowledge-based change

Design
Design Co.
Co.

Engineering division of a parent company

Established in 1999
Re-branded in 2000
Tough growth targets
Changing from engineering focused organization
to an entrepreneurial engineering service
External customer instead of internal customer

Change
Change Initiative
Initiative
Changing Structure from hierarchical to matrix, team
based structure
Using assessment centers to pick people for new
positions
Hiring new people for sales, marketing, finance & HR
Introducing a new board
Asking many of old managers to leave
New performance management for paying according
to achievement of personal objective

Resistance
Resistance to
to Change
Change
Conflict between new and old staffs
New staffs dont add value?
Traditional, hierarchical, very macho,
conservative and male oriented culture
Fixed cost pricing vs. hourly basis waging
Communications problems

Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.
Architectural & component Knowledge
Entrepreneurial and commercial targets of the
company, challenged both the component and
architectural knowledge bases.

Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.
Absorptive capacity
Engineers had no prior knowledge of new
working circumstances to ease their absorption
of the new knowledge they were being asked to
take on board.

Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.
Knowledge codification and diffusion
The issue in change is to do with the codification and
diffusion of the new architectural and component
knowledge necessary for change to occur, rather than
existing knowledge
Those who have developed new procedures, systems or
routines that work, can share them with others who
have not progressed so far

Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.

Redundancy
Redundancy is a key enabler of the types of
communication mechanisms described under
knowledge codification and diffusion.
Requisite variety

Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.
Enabling context
The enabling context would be about how,
through structures and
informal groups, as
discussed above, to facilitate sharing and
development of new ways of working

Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.
Conclusion
Conclusion

Management implications
Individual are not passive recipients of change
Change is a process of innovation and creativity
The individuals need to be enabled to re-create
their ways of working, their daily routines and
behaviors
Senior management cannot impose the detail of
what individuals need to do differently to meet the
aims of change

Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.
Conclusion
Conclusion Management
Management Implications
Implications
New critical areas of focus
Communication
Creating and enabling context

Technology
Technology Trends,
Trends, Predictions
Predictions

Headlines
Headlines
CIA Overseeing 3-Day War Game on Internet
The CIA is conducting a war game this week to simulate an
unprecedented, Sept. 11-like electronic assault against the
United States. The three-day exercise, known as "Silent
Horizon," is meant to test the ability of government and
industry to respond to escalating Internet disruptions over
many months, according to participants.
05-25-05
http://online.wsj.com/article/0,,SB111627924241235058,00.html?mod=2%5F1153%5F2

Headlines
Headlines
Under Pressure to make cars safer, smarter and more fuel
efficient, auto makers are going back to the drawing board
and the testing lab. The result: A surge of innovation abd
experimentation is coming that the industry has not seem
since its earliest days.

Increasingly, cars will become electronic

thinking machines - not just mechanical
devices
WSJ 07-25-05

Decision
Decision Making
Making Framework
Framework
Information
Characteristics

Decision Structure
Business Professionals

Structured

Semi Structured

Un Structured

Operational
Management
Efficient, do thing right
Tactical Management
Business Unit Managers
-Effective, right thing
Strategic Management
Executives, Directors
-Transformation
RELATIVE TIME SPAN

Pre specified
Scheduled
Detailed
Frequent
Historical
Internal
Narrow Focus

Ad Hoc
Unscheduled
Summarized
Infrequent
Forward looking
External
Wide Scope

Thinking
Thinking Like
Like A
A Board
Board Member
Member
What CIO is
Thinking
1. Technology Integration

What BOD is
thinking
1. Corporate Profitability

2. Vendor Management

2. Buying or Selling

3. Compliance

3. Sarbannes-Oxley

4. Business Alignment

4. Succession Planning

5. IT Governance

5. Corporate Governance

6. IT Security

6. Risk Management

7. Sourcing

7. Long-Term Shareholder
Value
8. Executive Compensation

8. Talent Management

Source: From IT to the Board Room, John Byrnes MD for Mason Wells.

Mission
Mission Vision
Vision
Mission, Vision,
Goals

Information
Characteristics
Business Professionals

GOALS (SOP)

MISSION

VISION

Operational
Management
Efficient, do thing right
Tactical Management
Business Unit Managers
-Effective, right thing
Strategic Management
Executives, Directors
-Transformation
RELATIVE TIME SPAN

Pre specified
Scheduled
Detailed
Frequent
Historical
Internal
Narrow Focus

Ad Hoc
Unscheduled
Summarized
Infrequent
Forward looking
External
Wide Scope

Organizational
Organizational Effectiveness
Effectiveness
ENVIRONMENT
CLIMATE

Other Teams

Enthusiasm

STRUCTURE

Competition
Reward
System

Reporting
Relationships

Values
Clarity

Mission
Philosophy

Feedback
System

Flexibility

Culture

Accountability

GOALS

Creativity

Collaboration

Marketplace

Commitment
Stress
Decision
Making

Behavior
Norm
Involvement

Pressures

Trust

Competition

Traditional
Traditional MFG.
MFG. Organizational
Organizational
ENVIRONMENT
CLIMATE
STRUCTURE

Other Teams
Competition

Mechanistic

Reward
System

Functional
Structure
Hierarchical

Values
Clarity

Mission
Philosophy

Commitment

Feedback
System

Flexibility

Culture

Marketplace

GOALS

Creativity

Collaboration

Enthusiasm

Centralized
Decision
Making
Control:
Standardization
Involvement

Pressures

Stress

Trust

Competition

Advanced
Advanced MFG
MFG Technology
Technology
Organizational
Organizational
ENVIRONMENT
CLIMATE

Other Teams

STRUCTURE

Competition

Organic

Reward
System

Product Team

Flat

Values
Clarity

Mission
Philosophy

Feedback
System

Flexibility

Culture

Marketplace

GOALS

Creativity

Collaboration

Enthusiasm

Commitment
Decentralized
Decision
Making

Control: Mutual
Adjustments
Involvement

Pressures

Stress

Trust

Competition

Values
Values
Honesty
Customers
Employees
Safety
Competitors
Revenue
Profits
Alliances
New Products
New Markets

Ecology
Cutting Edge
Image
Fun
Growth
Family
Capital
Quality
Social Capital
Location

Hedonism
Risk
Collaboration
Centralization
Creativity
Other

Technology
Technology Trends,
Trends, Predictions
Predictions

Predictions
Predictions
1893-1993: Dave Walter, Today then
In the early 1890s,a news agency commissioned 74
prominent Americans to write brief essays on what life
would be like in 1993, as part of the fanfare for the futureoriented World's Columbian Exposition, which opened in
Chicago in May 1893.
1990 2000: John Seely Brown, Paul Duguid, The
Social Life of Information, 2000
--> experts predicted the end of newspapers, television,
paper, office, established universitymissed the The
Internet

Predictions
Predictions
1893-1993: Dave Walter, Today then
Correct Forecasts
An income tax was coming.
Homes would be air-conditioned.
Women would vote.
Florida would boom as a leisure state.
Cities would become groups of suburbs

Erroneous Forecasts
Hypnotism would replace
anesthetics in surgery.
The government would set up
colleges to train servants.
Houses and cities would be built of
aluminum.
Unemployment would disappear.

MAJOR
MAJOR AI
AI APPLICATIONS
APPLICATIONS
Artificial Intelligence

Cognitive Science
(Human Information
Processing)
Expert Systems
Learning Systems
Fuzzy Logic Neural
Networks Intelligent
Agents

Robotics Applications
Visual Perception
Tactility
Dexterity
Locomotion
Navigation

Natural Interface
Applications
Natural Languages
Speech Recognition
Multi sensory Interfaces
Virtual Reality

Artificial
Artificial Intelligence
Intelligence Drivers
Drivers
New Scientist 04-2005 Editorial:
AI pervades our world and may soon start evolving faster than humans can track it - in whose
hands should this awesome power reside? When it comes to emerging technologies we know
what we are afraid of, even though we may not know why. There is no shortage of public
debate about genetically modified crops, nanotechnology and cloning. And policy makers
have responded: Many countries have laws that restrict they way these technologies can be
used.
So why the deafening silence about the potential dangers of artificial intelligence? Here is a
technology that is already changing the world: AI is used in everything from guided missiles to
air-traffic control. It is not yet "intelligent" in the human sense, but looks likely to change"

Social
Social Perception
Perception Machine
Machine
Social Signals: Tone of Voice, Facial Movement, Gesture
Listen in to social signals within conversations, ignoring words
Predictions:

Next move
Winner in negotiations
Connector within the group
Feelings about negotiations.

Applications:

Badge - social context sensing by infrared, audio and motion

GroupMedia PDA - Attraction signaling in social events
Serendipity Phone - Compares interests and makes socially appropriate introductions

Source: Alex Pentland MIT Media Arts and Sciences, Computer 3,2005

Socially
Socially Aware
Aware Communication
Communication
Potential Commercial Applications:

Mood Ring (jerk-o-meter) - enhance couples communication

Comfort Connection - call center application

Personal Trainer - immediate feedback

Winning Combination - Paring right salesperson with right client

Source: Alex Pentland MIT Media Arts and Sciences, Computer 3,2005

Worlds
Worlds Cafe
Cafe

Knowledge
Knowledge Management
Management
It's been said that if NASA wanted to go to the moon
again, it would have to start from scratch, having
lost not the data, but the human expertise that took
it there the last time.

Knowledge
Knowledge Networks
Networks Vs
Vs
Repositories
Repositories
users

users

Query

users

users
Query

users
Codified
knowledge

Response

users
users

users

users

Wearables
Wearables

Wearables
Wearables
Sony GestureWrist and GesturePad This Sony GestureWrist and GesturePad..
IBM Research's Meta Pad IBM's research to explore how humans interact with
computers and define the technologies needed for future pervasive devices.

ViA II PC a lightweight, wearable design of the PC,

Matsucom onHand PC The onHand PC "wristwatch" is a full-featured PDA
Xybernaut Poma Wearable PC Hitachi PC
CharmIT wearable development kit The CharmIT is Charmed Technology's first
wearable development kit.
Bitsy-Borg wearable computer A single board computer and a MicroOptical eyeglassmounted display unit, targeted at the OEM developer.
Xybernaut's XyberKids Wearable Computing Platform The Xybernaut XyberKids
product is a multi-component solution for students who face the challenge of a
disability,
OQO wireless handheld computer The OQO is the smallest high performance
WindowsXP computer with complete PC functionality.
Xybernaut Mobile Assistant V The MA V is a powerfulsuper lightweight wearable
computer .

Wearables
Wearables Fashion
Fashion
Dockers Mobile Pant
. Great for keeping cell phones, PDAs and beepers handy.
Scott eVest with personal area network SeVs have up to 42 hidden pockets and a patent-pending Personal Area Network (PAN).
Sanyo Fashion House Raincoats for Palm Devices Has a special pocket for Palm devices lined with static shielded material as well as
a cell phone pocket lined with anti-magnetic material.

Bristol Wearable Computing Project Concerned with exploring the potential of computer devices that are as unconsciously portable
and as personal as clothes or jewellery.
IBM Linux-based watch Linux on a wrist watch including Bluetooth capabilities
Samsung SPH-S100 cell phone watch PCS Single Mode (1,900 MHz) Watch Type Phone with SMS, Dedicated Ear-microphone,
Vibrating Alert Alarm/World Time, Automatically Call Lock, Voice Dialing(20), Speaker Phone Function, Phone Book(80) and
Calendar
Casio digital camera watch You can use IR data communication to transfer images to a computer
Casio PAT2GP-1V GPS Satellite NAVI watch uses GPS satellites that ring the globe to tell you your current location.
Timex Internet Messenger Watches Timex Internet Messenger Watches can receive email messages
Timex Watch - Speedpass System Inside the timepiece is a miniature Speedpass radio frequency transponder that allows customers to
instantly pay for purchases at Exxon and Mobil gasoline stations nationwide and at select
Microsoft Smart Personal Objects Technology (SPOT) Smart Personal Objects are common, everyday items, such as wristwatches,
clocks, pens, key-chains and refrigerator clock magnets that are made smarter, more personalized and more useful through the use of
specialized technology

Persuasive
Persuasive Technology
Technology -- Captology
Captology
Persuasive Technology - Insight into how computing
products can be designed to change what people
believe and what they do in domains such as
Health
Business
Safety
Design, theory, and analysis of persuasive
technologies: "captology."

Virtual
Virtual Reality
Reality

VT CAVE Virginia Tech

"Future Watch", a CNN Documentary on Applications of a CAVE

Virtual
Virtual Reality
Reality
VRML Resources
Web3D Consortium
VRML97

Virtual Reality Modeling Language (VRML)

VRML Gallery of Electromagnetism
Ampere's Law anim (255 kb)
Assorted anim (940 kb)
A line-integral (166 kb)
VRML Viewers
FreeWRL
GLView
OpenVRML
Web3D page
VRweb: A Multi-System VRML Viewer

Human
Human Mind
Mind Framework
Framework
Creative Machines

Perception Learning

Internal
Imagery

Cognitive neuroscience acknowledges only three

principal activities going on within the brain: learning,
perception, and internal imagery (imagination).

http://www.imagination-engines.com/

Life
Life Creation
Creation
Biologist J. Craig Venter once raced the US
Government to complete the decoding of the
human gnome. Now after a maverick career
studying the code of life, Dr. Venter has a new
goal: Life itself
WSJ 06-29-05

Trends
Trends to
to Watch
Watch
1.
2.
3.
4.

Ubiquitous wireless microchips: socks, brain, toaster

Move toward human-centric designs: reliable software
Moores Law will continue indefinitely
Quantum computers will obsolete current cryptography
methods
5. We will face social conflicts with robots
6. Green living possible as a result of Ubiquitous computers
7. Electricity will grow as a function of the Internet
8. All software, books, documents and information will be free.
9. Robots will explore space and our bodies
10.Bionic bodies parts will expand lifespan

Evaluating
Evaluating the
the Claims
Claims

Instead of extrapolating a trend, examine the social

consequences if the claim becomes true

ORGANIZATIONAL
ORGANIZATIONAL HORSEPOWER
HORSEPOWER

Organ izational Force

Global

LEARNING

Async

TEAM

KP

VIRTUAL

CULTURE

JIT
OHP

Organizational Speed

KP: Knowledge
partnership

Planning
Planning Management
Management of
of Personal
Personal and
and
Organizational
Organizational Change
Change
Key elements to consider when planning for the management of personal
and organizational change, driven by technology, include the
following:

Business description, objectives, and technological environment.

Personal and organizational responsibilities for moral and ethical use of

technology.

Current and potential uses of technology for the global success of business
objectives.

Human factors within the enterprise that utilize current and emerging
technology more effectively.

Change Management - Change

Strategies
Joseph Lewis Aguirre

Change
Change Resistance
Resistance Diagnosis
Diagnosis
Parochial Self Interest:
The best interest of individual is not the
best interest of the total organization

Misunderstanding & lack of trust

Few organization can be characterized as
having a high level of trust
The lack of trust between the person
initiating the change and the employee, can
cause for misunderstanding

Change
Change Resistance
Resistance Diagnosis
Diagnosis (cont)
(cont)
Different assessments - Remember Betsy?
People may assess the situation differently from managers
or those initiating the change
The difference in information that groups work with often
leads to difference in analysis

Low tolerance for change

People will not able to develop the new skills that will be
required of them
People will sometimes resist a change even when they
realize it is a good one

Change
Change Resistance
Resistance Diagnosis
Diagnosis TOC
TOC
The major obstacle to organizational growth
is managers inability to change their
attitudes and behavior as rapidly as their
organization require.
Peter F. Drucker

Methods for dealing with resistance to change

Approach

Commonly used in
situation

Advantages

Drawbacks

Education
+communication

Where there is a
lack of
information or
inaccurate
information and
analysis

Once persuaded,
people will often
help with the
implementation
of the change.

Can be very timeconsuming if

lots of people
are involved.

Participation + involvement

Where the initiatiors

does not have all
the information
they need to
design the change,
and where others
have considerable
power to resist.

People who participate will

be committed to
implementing change,
and any relevant
information they have
will be integrated into
the change plan.

Can be very timeconsuming if

participators
design an
inappropriate
changes

Methods for dealing with resistance to change

Approach

Commonly used in
situation

Advantages

Facilitation +
support

Where people are

No other approach
resisting because of works as well with
adjustment
adjustment problems
problems.

Negotiation +
agreement

Where someone or
some group will
clearly lose out in a
change and where
that group that has
considerable power
to resist.

Drawbacks

Can be time
consuming,
expensive and still
fail.

Sometimes it is a
Can be too
relatively easy way to expensive in many
avoid major resistance. cases if alerts others
to negotiate for
compliance.

Methods for dealing with resistance to change` (Con.)

Approach

Commonly used
in situation

Advantages

Drawbacks

Manipulation +
co-optation

Where other
tactics will not
work or are too
expensive.

If can be relatively
quick and
inexpensive solution
to resistance
problems.

Can lead to future

problems if
people feel
manipulated.

Explicit +
implicit coercion

Where speed is
essential and the
change initiators
possess
considerable
power.

It is speedy, and can

overcome any of
resistance.

Can be risky if it
leaves people mad
at the initiators.

Strategic
Strategic Continue,
Continue,
Fast

Slower

Little involvement of others Lots of involvement of

others
Attempt to overcome any
resistance

Attempt to minimize any

resistance

Key situational variable:

The amount and type of resistance that is anticipated
The position of the initiator vis--vis resistor (in terms of
power, trust, and so forth)
Relevant data for designing the change and of needed
energy for implementing it
The presence or lack of presence of a crisis

Change Management - Why

Transformation Fails
Joseph Lewis Aguirre

EXPERT
ADVICE
EXPERT
ADVICE
Change
Change
One of the biggest changes for companies over the
last decade or so has been the emergence of the
so-called "global" market. How can companies
better equip themselves to deal with change on a
global basis?

EXPERT
ADVICE
EXPERT
ADVICE
Change
Definition
Change - Definition

"Organizational change is the implementation of new procedures or

technologies intended to realign an organization with the
changing demands of its business environment, or to capitalize on
business opportunities.
-- ODR, a consulting firm with more than 23 years of experience

EXPERT
ADVICE
EXPERT
ADVICE
Change
Change
Slow, cautious, well documented, process driven,
incremental change is a luxury that very few
organizations can now afford. Speed has now
become a key competitive advantage.

Managing
Managing Change
Change
Research by The Global Future Forum (GFF) has found that as
much as 58% of top executives in the Fortune Global 500 admit
their organization is ineffective at managing radical change.

The research highlighted that organizations actively involved in

planning for change are only planning for "more of the same."

Internal
Internal to
to External
External Focus
Focus
"it is important for businesses to anticipate the
future - not just so that they can plan for it, but
so that can help to shape it too.

- David Smith, CEO of The Global Future

Forum

EXPERT
ADVICE
EXPERT
ADVICE
Expert
Views
Expert Views
"I think there is a world market for maybe
five computers" - Thomas Watson, IBM president,
1943.

"Television won't last because people will

soon get tired of staring at a plywood box
every night" - producer Darryl Zanuck, TwentiethCentury Fox, 1946.

EXPERT
ADVICE
EXPERT
ADVICE
Expert
Expert Views
Views

When Brigadier General Billy Mitchell proposed that airplanes

might sink battleships by dropping bombs on them,
U.S. Secretary of War Newton Baker said "That idea is so damned
nonsensical and impossible that I'm willing to stand on the bridge of
a battleship while that nitwit tries to hit it from the air."
Josephus Daniels, Secretary of the Navy, "Good God! This man
should be writing dime novels."
Scientific American (1910) "to affirm that the aeroplane is going to
'revolutionize' naval warfare of the Future is to be guilty of the
wildest exaggeration."

EXPERT
ADVICE
EXPERT
ADVICE
Expert
Expert Views
Views
"There is no need for any individual to have
a computer in their home" - Ken Olson, president of
Digital Equipment Corp., 1977.

"640k ought to be enough for anybody" Microsoft founder Bill Gates, 1981

EXPERT
ADVICE
EXPERT
Expert
Views
-- Takeway
Expert ViewsADVICE
Takeway
Managers who can expand their imaginations
to see a wider range of possible Futures will
be much better positioned to take advantage
of the unexpected opportunities that will come
along.

Change
Change -- Research
Research
More than 50% of survey participants had implemented dramatic
process change,
More than 90% implemented process changes that crossed
departmental boundaries
Almost 50% expect the change to impact their entire enterprise.
-- source: "Management Challenges for the 21st Century" by Peter F. Drucker A report published by ProSci Learning
Centers (www.prosci.com)

Change
Change -- Research
Research
More than 100 companies with different
characteristics have been studied.
The efforts have gone under many names.
In almost every case the basic goal was:
to make fundamental changes in how
business is conducted in order to help cope
with a new, more challenging market
environment

Change
Change -- #1
#1 Sense
Sense of
of Urgency
Urgency

How most successful changes begin.

Crises, potential crises or great opportunities.
Bad business results are both a blessing and curse in first phase.
An almost universal tendency to shoot the bearer of bad news.
When is the urgency high?
Over 50% have failed in phase 1,because of :

Underestimate/motivating people.
Overestimate success.
Lack of patience.
Paralyzed senior management.

Change
Change -- #2
#2 Power
Power is
is in
in the
the Why
Why
In most successful cases coalition is always
powerful.
Senior management always forms core
group.
More than high sense of urgency is required.
Reasons for failing:
No history of teamwork at top.
Expecting the team to be led by a staff executive.

Change
Change -- #3
#3 Vision-less
Vision-less
In successful cases, coalition develops a picture
of future.
A vision says something that helps clarify the
direction in which an organization needs to
move.

Change
Change -- #4
#4 Communicating
Communicating the
the Vision
Vision
Three patterns with respect to communication:
Holding single meeting or sending out a single
communication.
Making speeches to group of employees.
Newsletters and speeches.

Particularly challenging in case of short term

sacrifices.
Walk the talk, nothing undermines change more than
wrong behavior by important individuals.

Change
Change -- #5
#5 Force
Force Field
Field Analysis
Analysis
Emboldened employees.
Obstacles for employees:
Narrow job definitions.
Compensation and appraisal systems.

The action is essential both to empower

others and to maintain the credibility of
change effort.

Change
Change -- #6
#6 -- Planning
Planning and
and short
short term
term
metrics
metrics
Most people go on a long march unless
In one or two years you should find:

Quality beginning to go up.

Decline in net income stopping.
Product introduction.
Upward shift in market share.

In successful cases manager actively plan to achieve

objectives. They dont hope for.
The benefits of commitments to produce short-term
wins.

Change
Change -- #7
#7 Declaring
Declaring Victory
Victory Too
Too
Soon
Soon
New approaches are fragile and subject to
regression.
Ironically, it is often a combination of change
initiators and change resistors that creates the
premature victory.

Change
Change -- #8
#8 Culture
Culture
In the final analysis changes sticks when it
becomes the way we do things around here
Two factor in institutionalizing change:
To show people, the effects of new approaches.
Make sure that next generation of top management
will personify the new approach.

Change
Change -- Summary
Summary
Change process goes through a series of
phases.
Critical mistakes in any of the phases can
have devastating impacts.
A fewer errors can spell the difference
between success and failure.

Change Management- Why

Change Fails
Joseph Lewis Aguirre

Change
Change is
is Personal
Personal
Each individual MUST think, feel, or do
something different.
Change programs fail because of:
Having a mechanistic mental model

Breaking change into small pieces

Managing the pieces

Change
Change is
is Personal
Personal (cont)
(cont)
The challenge is to manage the dynamics not the
pieces.
Teaching personnel how to think strategically,
recognize patterns, and anticipate problems and
opportunities before they occur.
From the managerial viewpoint, change is a
balancing act

Change
Change is
is Personal
Personal (cont)
(cont)
Example: Transition Management Team, a group of company
leaders, reporting to the CEO, who commit all their time and
energy to managing the change process.

Managing change for this group means:

Managing the conversation between the people leading
the effort and those who are expected to implement the
new strategies.
Managing the organizational context in which change
can occur
Managing the emotional connections

Change
Change -- Typical
Typical Approach
Approach
1. Management says We have to make some changes
around here (TQM, BPR, Employee Empowerment, )
2. A task force is formed
3. This force works without communicating anyone else,
trying to meet deadlines, testing a lot of what-ifs
4. The results are delivered
5. Everyone has to do his part

Change
Change -- Organization
Organization Context
Context
Strategic Frames

Blinders

Processes

Routines

Relationships

Shackles

Values

Dogmas

People

Change Survivors

Change
Change -- Organization
Organization Context
Context (cont)
(cont)
Change Survivors: Cynical people whove learned how to
live through change programs without really changing at all.
They know that change programs are only managers fads.
Their reaction is the opposite of commitment.
In this context every change effort will fail.
Managers should change their behavior.
How would we act? How would we attack our problems?
What kind of meetings and conversations would we have?

Change
Change -- Organization
Organization Dynamics
Dynamics
An organization, like a mobile, is a web of
interconnections.
A change in one area throws a different part off
balance.
Managing these ripple effects is what makes managing
change a dynamic proposition with unexpected
challenges.

Change
Change -- Transition
Transition Management
Management
Primary responsibilities:
Establish context for change and provide guidance
Stimulate conversation
Provide appropriate resources
Coordinate and align projects
Ensure congruence of messages, activities, policies, and
behaviors
Provide opportunities for joint creation (Empowerment)
Anticipate, identify, and address people problems
Prepare the critical mass

Change
Change -- References
References

John P. Kotter, Leading Change, Why Transformation Efforts Fail,

HBR , April 1995.
"Management Challenges for the 21st Century" by Peter F. Drucker A
report published by ProSci Learning Centers (www.prosci.com)

Jeanie D. Duck, HBR on Change 2000, Managing Change: The

Art of Balancing

, Donald N. Sull, HBR on Culture and Change 2002Why Good

companies Go Bad

, Debra E. Meyerson, HBR on Culture and Change Radical

Change, The Quiet Way

Colin A. Carnall, Pearson Education, 1999, Managing Change in

Organizations (Third Edition)