Professional Documents
Culture Documents
Organization Change
Thomas G. Cummings
Goal 1
Understand Big Picture of
Organization Change
Identify Forces Driving & Restraining
Organization Change
Globalization
Aggressive newcomers (e.g., Lego, Skype, U. of Phoenix)
Consolidation into bigger competitors (Disney & Pixar)
Deregulation (airline & telephone industries)
Internal Pressures
Eroding margins
Pressures to grow
Shareholder pressure/Demands for accountability
Organization Resistances
Strong organization culture
Structural Inertia
Organization structure
Reward systems
Information systems
Goal 1
Understand Big Picture of
Organization Change
Identify Forces Driving & Restraining
Organization Change
Know Why Traditional Change Methods
Dont Work
Goal 1
Understand Big Picture of
Organization Change
Identify Forces Driving & Restraining
Organization Change
Know Why Traditional Change Methods
Dont Work
Understand 4 Types of Organization
Change
Discrete
Continuo
us
Incremental
Revolutionary
Adaptation
Re-creation
(JetBlue &
Mattel)
Fine Tuning
(Toyota & Honda)
Transformati
on (IBM & GE)
Goal 2
Learn 2 Effective Methods for
Changing Organizations
Kurt Lewins Organization Change Model
Encourage change
Push people & organization in new direction
Restraining forces
Resist change
Push people & organization not to change
Restraining
Forces
Unfreezing
Steady State
Driving
Forces
Transition to
New Steady
State
Refreezing
New Steady
State
Driving Forces
Organization
Steady State
Driving Forces
(Change)
Goal 2
Learn 2 Effective Methods for
Changing Organizations
Kurt Lewins Organization Change Model
Self-Design Organization Change Model
Designing
Valuing
Action
Learnin
g Cycle
Practical Learning
Company visits
Cases & articles
Speakers & conferences
Design Elements
Task & human
Formal & informal organization
Outputs
Performance outcomes
Human outcomes
Approaches to Designing
Fine-Tuning
Current
Design
Limited
Change
(Increment
al)
Imitating
Others
Zero-Based
Designing
Extensive
Change
(Revolutiona
ry)
Action-Learning Cycle
Planning to
Modify &
Adjust Actions
Taking
Action to
Change &
Improve
Organizati
on
Diagnosi
ng
Progress
Collectin
g
Pertinent
Informati
on
Co
in
t
n
ly
l
a
o
r
p
Im
ActionLearning
Cycle
d
e
v
a
m
r
fo
r
Pe
e
c
n
ActionLearning Cycle
ActionLearning
Cycle
Time
Discrete
Incremental
Revolutionary
Adaptation
Re-creation
(Lewin Model)
Continuo
us
(Lewin Model)
Fine Tuning
Transformation
(Self-Design Model)
(Self-Design Model)
Goal 3
Explore Marshalls Center for
Effective Organizations, World
Thought Leader on Organization
Change
Strategic change
Designing high-involvement & team-based organizations
Corporate governance, boards, & senior executives
New reward, selection, & development practices
Management of innovation, learning, & knowledge
Optimizing human capital
Building sustainable organizations
Organization agility
Honeywell
General Mills
General Dynamics
Johnson &
Johnson
Verizon
Pfizer, Inc.
Procter & Gamble
PwC
Capital One
Boeing
Hewlett Packard
Walt Disney
Company
CedarsSinai
AlliedSignal
KimberlyClark
ArcherDanielsMidland
RoyalBankofCanada
SonyPictures
StarbucksCoffee
Alcoa
Microsoft
Weyerhaeuser
Arco
Amgen
Designing High-Involvement
Organizations
Made up of units or work teams
Carry out whole work process that delivers
value to customer
Members have the skills and knowledge to
work without day-to-day management control
Clear responsibilities and decision making
authority
Measured and held accountable for results
Organizatio
n Culture
Informatio
n&
Control
Systems
High-Involvement Organization
Features
Organization Structure: Flat & lean
Work Design: Self-managed teams
Information Systems: Open & distributed
Leadership: Visionary
Decision Making: Employee empowerment
High-Involvwement Organization
Features
Training &(cont.)
Development: Continuous
Selection Processes: Culture driven
Rewards: Performance & skill based
Culture: Strong & egalitarian
Workforce Accommodations: Plentiful
Takeaways
Organizations face increasingly complex &
rapidly changing competitive
environments
Not a question of whether to change but
how much to change and how
continuous to change
Type of change needed to compete in
todays environment moving from
adaptation (incremental & discrete)
towards transformation (revolutionary &
continuous)
Most organizations are not good at
managing change, no less transforming
themselves
Takeaways (cont.)
Lewins change model & self-design
change model together address 4 types
of change
Organizations need to learn how to do
both of them. This gives them dynamic
capability that is key to sustained
competitive advantage
Centers like Marshalls CEO can help
organizations learn this capability, but in
the end, organization must learn how to
change themselves