Over the next hour or so we will move through:

a)Introduction to change management

b)So what; I am an RO consultant not a change manager

c)change and linkages to RO

d)Introduction to change models/processes/theories

e)Criticality of people in the change equation

f)Punched equilibrium strategy model

g)A suggested change management mode

Lynch, Paul

English

ResearchOnline at James Cook University

Using a Change Management Process in Implementing RO Dr Paul Lynch School of Business James Cook University Cairns, Queensland Australia Over the next hour or so we will move through:  a) Introduction to change management  b) So what; I am an RO consultant not a change manager  c) change and linkages to RO  d) Introduction to change models/processes/theories  e) Criticality of people in the change equation  f) Punched equilibrium strategy model  g) A suggested change management model Nancy Lee: 2013 ‘There is nothing more practical than a good theory’  Requisite Organisation Theory (1989) Stratified Systems Theory (1980s) Theory of Time (1980s) The Glacier Project (1950s) A General Theory of Bureaucracy (1970s) A Theory Of Life (2000s) Concepts for Space and Time (2000s) A Theory Of Information Complexity (2000s) On-going research Requisite Organisation development 1950s to 2012 Examples of change management models    change strategies of sample organisations: (Dunphy & Stace 1990)  7-S model: (Waterman, Peters & Phillips 1980).  organisational change models: (Nadler, Shaw & Walton 1995)  eight steps to transforming your organisation: (Kotter 1996)  enduring skills of change leaders: (Kanter 1999)  three horizons change model: (Coley 2009)  organisational hologram design process: (Mackenzie 1991)  three step change process: (Lewin 1951) John Paul Kotter is the Konosuke Matsushita Emeritus Professor of Leadership at Harvard Business School.  In Leading Change (1996) Kotter argues that companies must change if they are to avoid obsolescence. None have been really successful; many more have failed because they haven’t altered human behaviour. This is the job of the leader . Rosabeth Moss Kanter holds the Ernest L. Arbuckle Professorship at Harvard Business School, where she specializes in strategy, innovation, and leadership for change.  Her strategic and practical insights have guided leaders of large and small organizations worldwide for over 25 years.  Sirkin (2005) reports that studies show in most organisations, ‘two  out of three transformation initiatives fail’. The more things change,  the more they stay the same Battlefield lessons  for the boardroom   Katzenbach argues there are four key elements that leaders should focus on to drive change.   Jon Katzenbach served in the US Navy during the Korean War, but was never in the US Marine Corps like his father. Nevertheless, the US author and cultural change expert still carries the Marines’ simple value statement in his wallet.  Katzenbach, founder and head of the Katzenbach Centre at management consulting firm Booz & Company, spent nine months observing the marine Corp closely to understand how it came to have such a strong culture.   “It’s about how you should focus on a couple of key elements in four areas to get the most out of your organisation early on,” One: is the critical few elements of culture that most need attention. ”Deeply ingrained culture evolves slowly and you have to learn how to make use of the culture that exists rather than trying to bomb it out of existence,” he says.   Second: consider the critical few forces within the organisation that can help you achieve change. This can include front-line “master motivators”. Katzenbach says he has worked with hundreds of organisations to effect cultural change and “master motivators” account for 10-15 per cent of front-line managers. They have little power over pay or promotion but know intuitively how to inspire and motivate people within their particular organisation.   Third: other forces worth tapping into can include “exemplars” – the people already demonstrating the behaviour you want – and people who act as informal network hubs.   Forth: there is leadership behaviour. “A senior leadership group is pretty likely to be fixed in its ways but you need to find a few things they can and will do differently to signal to the rest of the organisation that the change you are hoping for is important. If senior leadership isn’t going to change you aren’t going to get very far.” What everyone can see from the surface What you may know if you are familiar  with a particular industry Generally unknown to outsiders Trilogy of understanding an industry/business unit The Relationships Among Career Stages, Life Stages, and Performance Exploration Establishment Maintenance Decline 15     20     25     30     35     40     45     50      55     60     65 High          Performance         Low  Growth? Advancement Trial Maintenance? Decline Stagnation? 12 70+ Time The Adoption Curve Percent Adoption Innovators (3-5%) Early Adopters (10-15%) Early Majority (34%) Late Majority (34%) Laggards/ Nonadopters (5-16%)           0 5 20 50 90 Kotter’s  8 step change process + Org Process: Leadership  Fair Compensation People at Work: Individual Capability Talent Pools Why Change Interventions Fail The CEO leaves, moves on, is asked to go.         Key staff leave The economy changes (GFC)                               Business restructure The market for the products drops off                   Corporate takeover Downsizing                                                            Change of Government (Australia) The process falters         Changing of the guard  New CEO          And so the list goes on  Who are the first group[s] that get the chop?  Mark Cutifani is in the process of taking over after Cynthia Carroll left in October (underperformance) Sam Walsh replaced Tom Albanese in January (underperformance) Andrew McKenzie has taken over from Marcus Kloppers last month (culture change) Anglo Gold is looking for a new CEO Murilo Ferreira is less than two years into the running of Vale Mick Davis of Xstrata will leave once the merger takeover with Glencore is concluded (Came to a head late May) Linkages between the OD trials at three CRA mines  and the go/no-go decision trigger for the project Jaques McKinsey & Co Brady Blackwood Requisite Organisation  pilot project undertaken at Woodland mine   Carnegie project leader Theory development Managing Director: business unit responsibility Modeling, process analysis, profit & loss General Manager Operations: mine site     Woodland mine project team   Carnegie stressed the point that this ‘was about having an ideal mix of ability and talent to carry out a pilot project’ (Carnegie & Brady 2008).   The project team composition formed the basis for the three preliminary trials undertaken to ensure continuity across sites and minimise process errors.   CEO as change sponsor  Prerequisites  for a   Kotter/RO   organisation  change  management  model  arising   from the   study Recurring funding from corporate Utilise the next generation  of  leadership Trial the change process Minimise use of  external consultants CEO as change sponsor Minimise use of external consultants Trial the change process Utilise the next generation of  leadership Recurring funding from corporate Kotters 8 stage change process Inputs  leading  Into a  Kotter/RO   change   management   intervention Kotters change process Outcomes of study objective (vi) stage 1 RioTinto Corporate Activities: 1972 – 2012    1873 Rio Tinto company  formed  in London. (river Tinto mines in  Southern Spain operating  since 750 BC) Carnegie appointed  CEO    1972   1972-77   1977 1979 Meeting with Elliott Jaques Corporate planning benchmarking re-alignment Preparation of discussion papers 1977-86 1989-91 1992-93 1993 Organisational Development  & RO  implementation Award restructuring Work on Staff employment systems CI, QA, TQM & CLASSIC  Moved to  salary staff employment 1997-03 1995 Rio Tinto And CRA merged as a  dual listed company PEP & Six Sigma/Lean  1994 CRA Purchased 100% of Comalco Purchased Alcan ($44B) &  renamed  Rio Tinto Alcan 2007 Global Financial  Crises (GFC) mid 2007/8 1986- 89 Strategy and the ‘Punctuated Equilibrium’ Model  Corporations tend to follow a strategic orientation evolving through ‘equilibrium periods’  This equilibrium is “punctuated” by short bursts (triggers) of fundamental change known as ‘revolutionary periods’  Chinese offer to purchase ownership in Rio Tinto  Aluminium Coal and  Iron Ore 2008/9 2008/12 ‘Mine of the FutureTM’ Concept  initiated Persistence Nothing in the world can take the place of     persistence.  Talent will not; nothing is more common than unsuccessful men with talent.   Genius will not; unrewarded genius is almost a proverb.  Education will not; the world is full of educated derelicts.  Persistence and determination alone are omnipotent.    The slogan “Press On” has solved and always will solve the problems of the human race.       - Calvin Coolidge ‘There is nothing more practical than a good theory’  Recap   This morning we have looked at:  a) Introduction to change management  b) Why do we need to know about it  c) Linkages between change processes and RO  d) Change models/processes/theories  e) Importance of people in the change equation  f) Punched equilibrium strategy model  g) A suggested change management model  References Dunphy, D. & Stace, D. 1990, Under New Management: Australian Organisations in Transition, McGraw Hill Book Company, NSW Australia.  Google Images 2013  http://images.google.com.au/  Grady, V. M. & Grady III, J. D. 2012, The Relationship of Bowlby’s Attachment Theory to the Persistent Failure of Organisational Change Initiatives, Journal of Change Management, DOI:10.1080/14697017.2012.728534  Hunger, J. D. & Wheelen, T. L. 2011, Essentials of Strategic Management, 5th ed. Prentice Hall New Jersey.  Jaques, E. 1996, The Requisite Organisation, 2nd ed. Cason Hall & Co Publishers Arlington Ridge Road, Arlington VA.  Kanter, R. M. 1985, The Change Masters, Simon and Schuster, New York.  Kanter, R. M. 1999, The Enduring Skills of Change Leaders, Leader to Leader, summer. (13), pp. 15-22. Retrieved October 18, 2000, from: www.ducker.org/leaderbooks/121/summer99/kanter.html.   Kirsner, D. 2005b, Who was Elliott Jaques?, International journal of applied psychoanalytic studies, John Wiley & Sons, Ltd, New York, N.Y. pp. 318-326.  Kotter, J. P. 1995, Leading Change: Why Transformation Efforts fail, Harvard Business Review, Mar-Apr 73(2), pp. 59-67   Kotter, J. P. & Cohen, D. S. 2002, The Heart of Change, Retrieved November 6, 2012, from http://www.kotterinternational.com/books-and-resources/books  Kritsotakis, J. 2000, Research Methods Part 1, Department of Management, St Andrews University. Retrieved January 9, 2002, from: www.standrews.ac.uk/academic/management/text/cm/honours/3007.  Lewin’s Three Stage Model. 2008a,  Lewin’s Three Stage Model, London Management Centre (LMC). Retrieved January 22, 2011, from: www.lmcuk.com/management-tool/lewins-3-stage-model.  Lynch, P. 2011 Carnegie, Jaques and Requisite Organization: a Meeting of Minds at Conzinc Riotinto Australia 1977-1993. PhD thesis, James Cook University.  Lynch, P. 2012/13 MBA Program, LB5205, People in Organisations, unpublished teaching resources, School of Business, JCU Cairns  Ornstein, S., Cron, W. L & Slocum, J. R. 1989, Life Stage versus Career Stage: A Comparative Test of the Theories of Levinson and Super, Journal of Organisational Behaviour, Vol. 10, pp. 117-133   Pavlina, S. 2005, Self – Discipline: Persistence, Retrieved March 22, 2012, from: http://www.stevepavlina.com/blog/2005/06/self-discipline-persistence/  Sirkin, R. & Jackson, A. 2005, The Hard Side of Change Management,. Harvard Business Review, Oct , pp. 109-118, Retrieved Aug 17, 2010, from:  Emerald http://www.emeraldinsight.com/  Xie, B. 2012, Mining Industry Overview Retrieved May 6, 2013, from:  http://www.columbia.edu/cu/consultingclub/Resources/Mining_Boyi_Xie.pdf 

Change management and requisite organisation

ResearchOnline@JCU

https://researchonline.jcu.edu.au/28202/1/28202_Lynch_2013.pdf

Change management and requisite organisation

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