Critical Review on Organizational Change
Preface
“Change is seen as an opportunity, not a threat, calling for creative initiatives rather than defensive reaction; a process of taking charge of your environment and creating the results you want for yourself” (Nolan 1981). This assignment establishes an overview on Access Info Sources Private Limited, an organization (1999) that is engaged in the line of compiling and publishing the business critic data, in the industrial & commercial spectrum of advertising sector in Kerala state (India). This paper analyses the competitive edge Access have gained after making the business data accessible online to the customers and explains the structural changes fallen out in the organization from quondam methods to contemporary.
Part. 1. Contextual Information and Extent of Change
1.1 Transformational Change: Classification of change accented
“There are many organizations, however, they have been, or will soon be, subjected to unprecedented and unanticipated public pressures to make radical change” (Dunphy et.al 2003) defines the transformational changes an organization alter and adapts. The advertising industry in Kerala was old-fashioned till 2006, since Access has decided to go online, automate and convert the entire paper business information to soft data in computers to allow the external clients and consumers to access it online. The introduction of computers to employees, online data accessing options to the customers and clients were completely transformational and upshot a monolithic flack on business rivals and channeled their client attraction towards Access on account of availing information online as the usage of internet was much comfortable.
1.2 Postulated changes and the environmental pressures
The managerial team of Access identified that the survival of the organization is depend on the improvement of sales and profit, process, control on capital, time savings, market survival etc. The organization analyzed that this can be attained by implementing the new technology and there is a high extent of influencing the market by implementing the new means of tech-communication which may subject the organization to run an extra mile by introducing the computer based technology.
“Environmental changes are recognized well enough, but they do carry important implications for structural change in organizations” (Child, J 1988). While enjoying the benefits of the new technology, Access faced environmental forces like the competitor pressures, risk of information security and data protection, cost associated with the new office facility, skilled manpower, supplier costs, equipments and the updating costs, risk of incompetent staffs who may protest against the change and the new staff adaptability, stake holder issues and sentiments, volatile IT conditions, legal formalities related to internet protocol laws, time constrains related to training and further data automation and risk of profit loss till the data is completely automated.
1.3 Force-field Diagram
1.4 Anticipated improvement: Profit
The organization anticipated a high and regular profit after the technological changes constituted. Despite the huge cost associated with the automation process, the company perceived the competitive edge hosting an online directory that in turn shall capture the imagination of the tech-savvy businesspersons thus escalated their investment in Access by leap and bounds. On top of all, this process was sure to reduce the costs of printing, publishing, copying and distribution that constituted the foremost expenditure. The rest of this paper will look into profit improvement in organization using a change model and a change agent.
Part. 2 Diligence, Devising and Execution of a Change Model
2.1 What is a change model?
A change model is an abrupt, radical, emergent or a step by step solution for an ongoing issue or issues, concerned with an organization, people etc, which has to be carried out from an exhaustive analysis and acute assiduity given to the inventions of prevailing conditions, environmental pressures, future risks, succeeding threats, and the anticipated profit improvements since the model is executed.
Prior to the formation and implementation of a model, an organization requires a diagnosis to find need for change. The diagnosis has to be carried out through interviews, questionnaires, projective methods, observations etc. Diagnostic method can generate the actual results in constituting a substantial change model, grounded on the studies of prevailing issues which are standardized in nature, and crucial as it gives the optimum results on comparison with the usual organizational habits of constructing decisions based on mere assumptions or predictions.
Similarly, Access identified the need for change and actual inputs to be included through various diagnostic methods before creating their change model. The managerial team of Access analyzed and put forward the forces which may drive or affect the whole system while implementing the change model. The following facts derived from the force-field analysis performed by Access divulged certain conditions which may come in effect, directed to further planning and sequence of events.
(1) Market research: Analysis on the market conditions and feedback from employees revealed that Access requires a technological advancement to gain a competitive advantage.
(2) Environmental pressures: Analysis on the market on the automation plans brought out the threats of environmental pressures that may affect the future estimations profoundly.
(3) Skillful manpower: The new technology requires fresh talents to run the business effectively and the cost associated to possess skilled manpower.
(4) Retraining costs: While the business is getting automated, accommodating the incompetent employees was another threat incurring retraining and related costs.
(5) Re-enrolling existing staffs to avoid Layoffs: Access identified the advantage of existing adaptable manpower though they lack the required skill-set to accommodate with the change. Access declared a salary cut-down for existing staffs until they possess the required skills thus saved them the cost associated to new recruitments and layoff settlements.
(6) Anticipated reduction in expenditures: The innovative idea of automation of processes and hosting online directory reduced the cost of time, printing, copying and publishing.
(7) Anticipated increase in sales: Since the public is increasingly becoming internet savvy, the magnitude of the opportunity to lure the competitor’s client base are immense and results sales growth and brand equity
(8) Possibilities of success: Identified based on the research done on all the above.
(9) Profit forecast: The statistics of profit and loss, expenditures and return estimations revealed the
scope of a positive profit forecast.
(10) Sustaining change: Based on the facts drawn above, the organization simplified the chances
of sustainability in the market through technology implementation, regular updating etc.
Findings prior to change model overture
2.2 Invention of a New Change Model
In year 2006, for the first time, Access reported net-losses. Financials for the year ending 2005-2006 imparted the facts of annual expenditures of 2003 to 2006, 3/5th of the total expenditures of Access had to be budgeted for printing and publishing. Access inferred the idea of implementing the new technology after employing serious thoughts on this, future estimations and market adaptability to build profit. The managerial team of Access rolled up the feedbacks from their employees to get innovative ideas to create their own model of change. Following diagram shows Access’ integrated change model which is a mix of their self findings and the extracts from the prominent change thinkers.
2.3 Selection of a compiled change model: Analytical reasoning
(1) Recognize the need for change: According to Hayes & Hyde (2007), “The start of the process is the recognition that external events or internal circumstances require a change to take place”. Access’ first task was to identify hoe to recover from the financial loss occurred.
(2) Establishing a sense of urgency: According to Kotter (1996), “The methods used in successful transformations are all based on one fundamental insight: that major change will not happen easily for long list of reason”. Access realized the requirement of making things possible at the earliest to avoid the cost allied to technological shift.
(3) Create a shared vision and common direction: Kanter et.al (1992), identified Lewin’s (1951) Change model as a “quaintly linear and static conception – the organization as ice cube – is so widely inappropriate that it is difficulty to see why it has not only survived but prospered”. Access exercised Kanter’s vision of strong leadership through unifying the staffs across hierarchy towards the same goal while creating awareness of the plans to be executed.
(4) Diagnose and get ready for the change: Access identified the potential threats and created awareness on the uplift the new technological shift results in and populated a positive impression and curiosity among the employees to make the environment ready for the change.
(5) Execute the change: According to Nilikant & Ramnarayon (1998), “No matter how well a change is appreciated and planned, if it is not executed competently to produce results, then the change effort would end up as a failure”. Access gave acute consideration on allocating resources, co-ordination of change facilities, installation of equipments, leadership etc. The lead person was also responsible for law proceeding related to internet protocol act.
(6) Building Change and capability: Access strengthened the improvements through introducing reward systems to the quick learners incited the organization to have a new vision and re-evaluated the changes, and made essential alterations accordingly.
(7) Reviewing the entire system: Reviewing is a mandatory process in a transformational change and Access made it habitual on an ongoing basis and reinforced the change process from time to time to keep the organization competent to reach the anticipated profit.
2.4 Mission accomplished? How? Why?
The innovative change model gave Access the competitive advantage over the contemporaries in terms of business expansion and profit. The objective behind this model was to create the desired profit and ignited based on the financial loss for the year 2005-06.
The model was successful since the selection of the model was a result of proper analysis, case study, market research, weighing of the pros n cones and more over the change to the tune of times. By updating its services based on the latest technology that in turn caught the imagination of those in the business, since 90% among them were tech savvy, and their clients who also hails from the business field (applying the concept of b2b). They were assured about the exposure due to their products and services and this, in turn, boosted the brand image of Access as an industrial leader, some one the business folks can confidently look upon for their market stimulation. More over, the revenue flow to access in the first year of its launching of online service was immense and the subsequent cost cutting measures implemented resulted in Access hitting an all time high in their gross revenue and profits.
Part. 3 Unveiling the Change Agent
3.1 Who is a change agent?
“The range of potential change agents includes those who work in corporations and those outside who wish to influence them. Internal change agents are board members, CEOs, executives, managers, supervisors, professionals in staff roles and other members of the workforce. External change agents include politicians and bureaucrats, investors, consultants, suppliers, subcontractors, financial analysts, social and ecological activists, and consumers” (Dunphy et.al 2003).
“If we wish to change organizational culture, we will need to influence the thoughts and behavior of individual employees (Williams et.al 1990)”. “A role of a change agent should include defining problems and opportunities and to frame questions across rather than within organizational boundaries. They need to be able to assist people to feel and make sense of external pressures, for example- of pubic expectations, while at the same time supporting process of learning and adaptation” (Attwood et.al 2003). It’s often found that the change agents are not being effective against the benchmark, staggered and prolong to make the solid start and everything around seems to connive to obstruct the plans while paradox confuses the situation. The role of a change agent is to watch, listen, analyze and communicate the way things are going around, self accommodate and affirm the role to be played and initiated. “Disciplined inaction is an opportunity to cultivate the inner stillness through which we appreciate the unfolding of the implicate order and our role in it. And then we must act decisively” (Dunphy et.al 2003).
For Access, a shift in management systems was inevitable by the year 2006 since they plummeted to losses from steady decline in profits. The senior management initiated a study on this and the financials revealed a hike in printing expenditure from 30% of the total expenditure to a whopping 50% in 2006. The senior management concluded to carryout the change, entrusted by the change agent.
3.2 Change Model: Lucid mentation and logical scuttling of the Change Agent
Despite the fact that Access’s innovative change model was a unified effort by the different levels in the hierarchy, the inputs by the change agent were predominant while structuring and executing. On concluding the reasons for the loss in the year 2006, the change agent formed a team of market researchers and their findings revealed that services enabled by technology, like an online directory, is their preferred source of information source. Based on shrewd analysis on the facts mustered, he started diagnosing the facilities and employed the tech-support group to optimize the technological improvements in the organization. Since the requirement was identified, the change agent allocated required resources and equipments to evaluate the newly constituted systems and procedures to ensure the change model is on course and initiated training programs for the employees to lift their skill-levels. Change agent shown his exceptional leadership quality in change execution and the adapted model was keenly monitored to execute the next change. He addressed the employees concerns with in the favorable limits of the organization and made few alterations to the new system with the help of tech support group. He conducted periodical reviews, detected the flaws in the change model and remodeled, set, analyzed, and revised the organizational targets thus prioritizing the organizational goal. He continued this process at regular intervals and kept the momentum going.
“The various skills that a change agent ought to possess may be divided under three categories: cognitive skill, action skills and communication skills” (Harigopal 2006). According to him, the change agent should possess the capability to understand his own motivational level towards the need of change, the type of change required, the interrelationships between people and the system, a concrete planning, the answers for the obstacles to be faced and the capacity to evaluate the process. The change agent in Access participated in several activities to understand the agony of people on change while possessing goal clarity, role clarity, the strong desire to make the change process happen using his own client related experiences, analytical skills and diagnostic methods. He analyzed his own capabilities while convincing his leadership skills to the concerned authority. He identified the external and internal pros and cons sequentially and build the rapport between the ‘skilled’ and the ‘experienced’ to dissolve the psychological iceberg.
3.3 Team building and verbal exponent
“For anyone committed to team building as a way of achieving change it can be frustrating that not everyone embraces this approach” (Leigh, A 1991). A change agent should be a perfectionist, imaginative, intellectual and knowledgeable. He should possess the skills to build the team, should possess and display the serious concerns related to the team building activity which helps to reach organization’s desired summit. The change agent in Access identified major concerns related to staff morale, co-ordination between the skilled and unskilled, de-promotion, salary cut-down etc. He has conducted individual sessions with team to build the formal cyclic relationships between managers, senior and junior staffs and cultivated the team spirit to build mutual respect, interdependence, shared values, shared responsibility, common goals, thus formed the creative energy in each individual to become a team player. The tech training was provided to the unskilled people to explore the possibilities of working together with the skilled and the change agent introduced a rewarding system for the team performance, have shown the courtesy to appreciate all potential contributors and increased the level of healthy competition.
“Oral communication abilities have been rated highest as a needed supervisory skill” (Leigh, A 1991). “The change agent must have a particular personality. As a result of the need to establish, maintain and work on relationships with people within the organization, the change agent needs to show an awareness and sensitivity to social issues” (McCalman 2000). The change agent in Access listened to the concerns the employees had expressed to the new tech shift, but envisioned them with organization’s goals.
He has addressed their concerns and introduced his ideas to seal the threat. All the time under pressures, he maintained his dignity, argued logically and conveyed his disagreements, with out being aggressive or rude, even to the unpleasant behavior of some staffs.
“Being a change agent means living in and between two worlds. One is the world of inner experience- of personal meaning, of selfhood; the other is the outer world of action” (Dunphy et.al 2003). The through implementation, analyzing, alterations, and monitoring brought astounding results to Access. Once the need for change was determined, he impelled a sense of urgency and have started the process of cognizance and sought support from the employees, customers and stake holders and created a shared vision to reach the identified fortune.
Part. 4 Identifying the Change efficiency
4.1 Deficits, Solutions and Proposals
It is an accustomed situation that any new ideas presented in an organization will not be highly appreciated by the mass and the tendency of perceiving the change as a threat will tamper the goal of the ideas presented. Irrespective of the fact that the change agent made the shift immensely pro-active, there were some deficits found while assessment of actual outcome against anticipated results.
Though the target was to reduce expenditures and to increase the revenue, the first month’s results have affronted the management team due to the extra expenditure on equipment, resources and training. The actual velocity of profit output was much slower against anticipation. Change agent, on analyzing the factors, zeroed on a group of unskilled employees displaying their pessimistic approach against the salary cut-down and the changes as a whole. The baggage of certain actions dragged in to an unlawful condition between the supporting and the non-supporting groups of change.
The change agent in consultation with the senior management, called upon the pessimist group to counsel as he understood the importance of maintaining the harmonious circumstance to get the anticipated outcome. The clients were not really confident in the initial stages to go with the project and were skeptical about the prospect they could exploit compared to the chances of getting the same from the old ‘solid’ system. The change agent found a viable solution and introduced a ‘launch discount offer’ for the early birds for a limited time and promoted the advantages of using the new system. This attracted good number of clients to Access entrusting their business ad, and in turn increased sales and the profit rapidly for both parties.
4.2 Learning and Sustainability
“Investigations might suggest that customers are more concerned about other value proportions such as product reliability, price and so on and might feel that competitors are better able to satisfy their needs in these areas” (Hayes 2007). The change managers of Access identified the importance to update themselves on the new tech-savvy customer behavior. Few other organizations in the similar and various industries have adopted Access’ trends once it was found to be a subversive triumph. The organization realized the value of contemporary knowledge rather than just holding the proven methods of past. The next change was to keep a step ahead among the organizations that followed Accesses innovative steps to gain the market supremacy. Access kept the pace of the change process steadily and slowly upward since the implementation and the change managers kept their eyes open towards the post-modern technological launches to sustain in the market with a competitive advantage. The ‘experienced’ employees of Access also have learned the lesson of optimism towards the new changes and few of those employees have got promoted to the higher levels in Access’s change department. Accesses change story was howling, yet knowledgeable to remain calm, they kept their eyes open, for the next change that enables them to fruitfully uphold the market dominance.
Conclusion
“Change management is the process of continually renewing an organization’s direction, structure and capabilities to serve the ever-changing needs of external and internal customers” (Moran, W.J, Brightman, B.K 2000). The main objectives of this paper were to identify the methods and processes that have been used by Access to change their way of progressing their business and profit and to identify the role and the involvement of a change agent in the change planning, trials, execution and retention.
Access, at the age of 10, has acclaimed themselves as the almighty of three major domains in their jurisdiction: advertising, media and web-hosting. But still, at times the composition of their change practices gives the market a feel that they have just started and a long way to be passed. A multitude of protagonist employee groups, a cosmos of capital investors, and the coevals of digital customers are being restless to know what innovative change this organization is going to conquer next.
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