Katzenbach postulates five principles in managing the organizational changes. Katzenbach‘s strategy are derived from their study on a number of global enterprises like Apple, Microsoft etc. which have successfully reached their peak performance. Further, Katzenbach found that those companies could achieve such higher performance, better customer focus, and more coherent and ethical stance by following these principles.  More importantly, they highlight that these business organizations view culture as an accelerator of change, not a hindrance. In other words, culture is seen as a competitive advantage. This paper discusses how this strategy can assist leaders in an Indonesian private university to manage an organizational change that currently happen

Hadi, Marham Jupri

Salkiah, Baiq

English

Katzenbach postulates five principles in managing the organizational changes. KatzenbachÃ¢â¬Ës strategy are derived from their study on a number of global enterprises like Apple, Microsoft etc. which have successfully reached their peak performance. Further, Katzenbach found that those companies could achieve such higher performance, better customer focus, and more coherent and ethical stance by following these principles.ÃÂ  More importantly, they highlight that these business organizations view culture as an accelerator of change, not a hindrance. In other words, culture is seen as a competitive advantage. This paper discusses how this strategy can assist leaders in an Indonesian private university to manage an organizational change that currently happen

Jurnal FKIP Universitas Mataram (Fakultas Keguruan Dan Ilmu Pendidikan)

76  Original Research Paper Employing Katzenbach Strategies in Managing Organization Changes in a Private Higher Education Institution Marham Jupri Hadi1 and  Baiq Salkiah2 1 English Language Education, University of Nahdlatul Wathan Mataram, Mataram, Indonesia; 2 Economic Education, University of Nahdlatul Wathan Mataram, Mataram, Indonesia;    *Corresponding Author: Hadi, M, J,  English Language Education, University of Nahdlatul Wathan Mataram, Mataram, Indonesia; Email: marhamhadi@gmail.com   Abstract: Katzenbach postulates five principles in managing the organizational changes. Katzenbach‘s strategy are derived from their study on a number of global enterprises like Apple, Microsoft etc. which have successfully reached their peak performance. Further, Katzenbach found that those companies could achieve such higher performance, better customer focus, and more coherent and ethical stance by following these principles.  More importantly, they highlight that these business organizations view culture as an accelerator of change, not a hindrance. In other words, culture is seen as a competitive advantage. This paper discusses how this strategy can assist leaders in an Indonesian private university to manage an organizational change that currently happens  Keywords: Management, Organization Changes, Private University, Katzenbach   Introduction Change in organization will affect the ingrained culture and this could impact management practice, organizational effectiveness, morale, productivity and quality (Bindhi, 2011).  This simply means that the workplace can influence the success of the intended innovations, therefore, leaders of change need to be aware of the established behaviors towards their plan of change. Bindhi also suggest that change leaders are aware that understanding the established culture in an organization where change will be carried out is paramount for the success of the innovations themselves. However, he recognizes that there are also leaders who have poor understanding about the critical impact that culture can give in determining the organizational changes success. The current article discusses the application of Katzenbach's strategy in managing change particularly in higher education institution.  Global Enterprises Changes Katzenbach et al (2012 admit that the huge influence of culture toward the success of the plan. In their study on Aetna Company and other global enterprises like Microsoft, Apple, Google, etc. the found that leaders of these enterprises have positive views about culture and have successfully aligned their strategy, plans with the rooted culture in their organizations.   For instance, these enterprises view cultures as an accelerator of change, not as a hindrance. This indicates that they have gained rich understanding and proper methods in adjusting their innovations with the values or norms in their companies. It also shows that they have successfully manage the transitional change (Bindhi, 2011). Therefore, deriving from their study, they postulate five strategies that have been practiced by successful leaders in managing organizational change. These strategies are to 1) match strategy and culture, 2) focus on a few critical shifts in behavior, 3) honor the strengths of your existing culture, 4) integrate formal and informal interventions, and 5)measure and monitor cultural evaluation. In this essay, I will discuss briefly discuss these strategies and how they can be used to assist leaders in my institution to better manage the organizational changes. As noted above, the first strategy is to match between the strategy and culture. Katzenbach and colleague emphasize the significant part played by culture. This could mean that if a very well planned organizational innovation do not match or recognize the existing values or pride in an organization, it will fail. Katzenbach (2012) highlight that”…a strategy that is at odds with company’s culture is doomed and culture, every time, trumps strategy”.   The authors also identify that culture evolves, or it may change and influence organization’s progress. Concerning this, Katzenbach (2012) suggest that the best way to deal with cultural dynamics is by working with or within them, not Prosiding Seminar Nasional FKIP Universitas Mataram  Mataram, 11-12 Oktober 2019 77 fighting them.  These arguments are based on their research on a number of enterprises holding the belief that culture is competitive advantage. In other words, these enterprises believe that their ability to reach peak performance is the result of their not confronted their plans with the existing culture in their companies.  Instead, they used the organizational “software”(i.e. values or norms) in managing the innovation.   The second principle is to focus on a few critical shifts in behavior. When starting to make change, they advise leaders to observe the prevalent behavior within their organization, and imagine how everyone would behave when their organizations are at their best performance. They also need to identify what inappropriate, rooted behavior to discourage. However, to be able to diagnose what employees’ behaviors that can be affected by the plans, either, positively and negatively, the authors suggest the leaders to have “safe space” discussion with thoughtful people in the organization. By having sufficient understanding about this, leaders are then able to prioritize which behavior to encourage or to promote in the organizations that could contribute to the change process The next strategy is that leaders are encouraged to honor the strengths of the existing culture. Katzenbach highlight that “acknowledging the existing culture’s assets will also make a major change feels less like a top-down imposition and more like a shared evolution”. In other words, when the employees’ contribution are acknowledged and are taken into account by the leaders, it would make them feel that the change plan accommodates their aspiration. However, prior identification regarding the contribution of the existing culture should be done. Katzenbach suggest that the same methods (i.e. surveys, in depth interviews, and observation) for identifying the culture’s weakness can also be used by leaders. Therefore, with this knowledge in mind, executives are helped to rethink the best way to communicate the strategy as well as the way to interact with employees to support the new behaviors.  Katzenbach also mention how Dr. Rowe recognized the Aetna’s strong tradition that had successfully gained a great support from its employees. Dr. Rowe, when asked by an employee about the meaning of the organizational change they were doing, he replied that the change was meant to restore the company’s pride. The way Dr. Rowe responded indicates his awareness about the value established in Aetna.  Katzenbach also suggest that leaders can focus on finding another asset that changes leaders can influence, that is the employees who are already aligned with their strategy and desired culture. The fourth strategy is to integrate formal and informal interventions. In order to promote new behaviors in organization, Katzenbach emphasize the importance of integrating all modes of communication, formal and informal. The found that technical mechanism need to be side by side with addressing emotional side of the organizations. Formal approach would include internal communication among leaders, training leadership, performance management. These are critical to do to make people become aware of how their behavior affects the company performance.  Along with those formal approaches, leaders can also employ informal strategies like behavior modeling by senior leaders or engagement of exemplars and motivational leaders.  More importantly, Katzenbach also idenitfy how Dr. Rowe and other leaders built networking in advance with key influential people not only providing them insight but also enabling them to gain rapport. Consequently, these important people could voluntarily provide assistance to pass the massage to the other employees either formally or informally.  The final strategy is to measure and monitor cultural evaluation. In each stage of changing process, leaders have to measure and monitor cultural progress in order to maintain momentum after long haul. There are four areas to focus on, and these include business performance, critical behaviors, milestones, and underlying beliefs, thoughts and mindsets. Katzenbach reminds us to create relevant metric that measures what to measure properly. Further, it is suggested that the information gain or the repot of this measurement can be used as reminder of employees’ commitment and as a dialog basis of reinforcement mechanism.  Changes in a Higher Education Institution There are three main concerns that each higher educational institution in Indonesia has to deal with, and these include teaching and learning activities, conducting research, and giving services to community. Most universities in Indonesia are unlikely to balance the three, rather some would focus on teaching and learning and the rest of them will emphasize on research. Those universities who concern on the research believe that through research, they can improve their teaching and learning process as well as the community service. This belief is very likely to be adopted by my university in order to enhance its practice in 78 providing good educational service in Eastern Indonesia. Established in 2006, my institution has just been assessed by the National Accreditation Bureau (BAN PT) in 2011. The result of the accreditation shows that my institution lacked in research, or in other words, the research activities are still at minimum level. Therefore, it is necessary to encourage each lecturer to conduct and publish his or her research on annual basis. To ensure that this idea is well implemented, the university leaders have issued a new policy in which both punishment and incentive provided for any lecture who could compile with the plan. In other words, any lecturer who cannot go with this idea will be reconsidered to stay in our institution, as one of the university vice director said “to publish or perish”.  If they accept the idea, it means that they have more works to do beside their current teaching activities. Thus, the challenges facing the leaders in this context, is how they would ensure that every lecturer would accept the ideas and reach the institutional goals without having to outsource any lecture and make them feel comfortable with the plan. More importantly, leaders have to think how to raise the lecturers’ awareness about the importance of conducting research for them, for their students, for the university, and for the wider community, and to make them “happily” involve in the process of researching and publishing their works.  Before the policy issued by the university, there were rumors spread among the staff and it certainly disturbed their working situations.  As Bordia et al (2006) pointed out:  “It is not surprising that rumors are rife during organizational change, which is marked by periods of uncertainty and anxiety about issues of great importance to employees (their jobs, working conditions, and career advancement)”.  In response to the rumors, the university leaders organized some meetings with the whole staffs to deny the issue. This was effective “to cure the diseases”. Otherwise, if this rumor was left unaddressed, it may cause harms to the organization and other people (Bordia et al, 2006).  Unfortunately, success in handling rumors did not make the change plan run in that there were indications of resistance from some lecturer to the proposed plan. The resistance apparently came from senior lecturers that enjoyed their current working condition. They were unlikely to do the research because of they had been too busy with their teaching activities and other business such as spending time for family. As on lecturer says:  “I am aware that conducting research is good for teaching, but I would think it is better that junior lectures do that. All we need is spending time for family and we might retire soon”.   By looking at these realities, the university leaders might encounter problems in ensuring that every lecturer is conducting and publishing a research annually. Not only handling the rumors, they also have to deal with resistance from the senior lecturers. Ford and Ford (2009) strategies, however, can also be used in addressing serious resistance to change. In this paper, we will discuss how the leaders would better manage the process of change by referring to Katzenbach change management strategies.  Implication of Katzenbach’s Strategies The strategies postulated by Katzenbach have been proven to be effective in managing organizational change occurring in many global enterprises. The success of Katzenbach’s principles greatly depends on the leaders’ awareness of the entrenched culture and their ability to align their strategies with the organization vision, values and with leadership mode. In similar voice, Bindhi (2011) believes that an alignment is needed between organizational culture, change process and leadership practice. Accordingly, there are several aspects to consider to by leaders if they want to apply these strategies to better manage their organizational change.  To start with, leaders have to bear in mind a number of don’ts.  Avoiding these would allow the leaders to be able to adjust Katzenbach’s principles. First, they should not apply any strategy if they do not have sufficient understanding about the entrenched culture of their organization. Bindhi (2011) argues that it is critical to understand the established value or norms in organization if leaders expect to meet the change objectives. Simply put, the way leaders see culture would determine whether an existing culture could be either a “blocking stone” or a “stepping-stone” for innovations in organizations. Second, the leaders should not criticize the lecturers behaviors, for instance when they resist to the plan. Rather, appropriate manner of addressing resistance can benefit the leaders (Ford & Ford, 2009). Third, leaders or change managers should not focus on the lecturers’ weaknesses; rather, they should look at the positive contribution given by them to the 79 university. For instance, the university leaders can start providing incentive for any lecturers who have published their teaching reflection on the journal or any media. By doing this, it is very likely that the lecturers would feel honored or respected and could help the leaders to gain their sympathy. Fourth, the leaders should not rely on a single approach in implementing the change. Bindhi (pers.comm.2014) believes that there is no one size fitting all. In order words, any possible intervention is worth trying to ascertain the attainment of change objectives.  Lastly, the leaders should not let the cultural shift among the lecturers run without being measured or evaluated. Yuliar and Syamwil (2008) highlight the importance of acknowledging culture in introducing a change in Indonesian higher education context. They maintain that:  “For a developing society like Indonesia, in which traditional and modern cultures stands side-by-side, often in a complex mixes, cultural nexus seems to be as important as institutional mechanism, in supporting the development of innovation system”.  These scholars’ view about the significance of culture indicates that in managing change, leaders should put in their mind that technical approaches cannot work alone without recognizing the value of existing culture in the institution. If they fail to engage cultures or emotional side with technical mechanism, then there would be no, sustained, change (Schneider, Brief, and Guzzo, 1996). Schneider and colleagues further advocate that organizational change will only happen if people in the organization change their behavior. This implies that in the university context, leaders need to change some key behaviors in order that the innovation can reach its optimum result. However, we need also to bear in mind what Katzenbach (2012) propose, that is to start everything with what has already been working.  In order words, we do not have to change everything, rather we only need to alter or encourage some small behaviors that can have significant impact the whole organization plans. In my university context, leaders should observe what consistent practice that lecturers have been doing, which is aligned with their plan. For instance, if some lecturers have done regular professional reflection upon their teaching practices, they have to support these teachers and try to expose this positive behavior to the whole university members. Furthermore, many aspects require the participation of all university members from the beginning up to the change process is carried out. These would include sharing ideas about the plans, stages of plan implementation, and criteria of success.   Conclusion The central argument of Katzenbach and colleagues is that change managers should recognize that strategy for change alone will not bring effective change. Rather, Bhindi (2011) suggests that: “to manage cultural change effectively, leaders need to manage transition effectively”.  Therefore, as many scholars view that sufficient understanding about the established culture and making efforts to align it with change plan, strategies and all university members will enable leaders to manage organizational change they undertake more effectively. Furthermore, in my institution context, I would suggest that some considerations should be taken, for instance avoiding some don’ts and giving reward to any lecturer who have been in line with the change plan. At the same time, university leaders have to build rapport in advance with key influential members in advance and to communicate the innovation before and during change by integrating both formal and informal mode of communication channels. Overall, change managers should prioritize culture intervention at the first place in all aspects of the organizational change.  Acknowledgement I would like to thank Prof. Bhindi for providing comments on this article.  References Bindhi, N., (2011). Organizational change and grief management: implication for leadership. A Discussion paper: Australian centre for education leadership, faculty of social sciences, University of Wollongong, Australia. Bordia, et al, (2006).  Management are aliens! Rumors and stress during organizational change. Group & Organization Management; Oct 2006; 31, 5; ProQuest Central, pg. 601 Ford, JD & Ford, LW (2009). Managing yourself: decoding resistance to change', in Harvard Business Review, vol.87, no.4, pp.99-103. Katzenbach, JR, Steffen, I & Kronley, C.(2012). Cultural Change That Sticks: Start With What's Already Working, Harvard Business Review, vol. July-August, pp.110-117. Schneider, B., Brief, A.r., Guzzo, R.A (1996). Creating A Climate And Culture For 80 Sustainable Organizational Change. Retreived on May 20, 2014. Available at http://media.johnwiley.com.au/product_ancillary/64/04702605/download/chapter41.pdf  Yuliar, S., Syamwil, I. B. (2008). Changing Contexts of Higher Education Policy: Toward A New Role of Universities in Indonesian’s Innovation System. Paper presented in the IV Globelics Conference at Mexico City, September 22-24 2008  

Employing Katzenbach Strategies in Managing Organization Changes in a Private Higher Education Institution

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Employing Katzenbach Strategies in Managing Organization Changes in a Private Higher Education Institution

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