Introduction
In today’s world of constant change, the idea that change itself
has become a constant is an often-voiced phrase. If one were
asked how much change to expect over the next 20 years, or even
over the next 5 years, it would be difficult to predict with
any degree of certainty. Yet, in order for organizations to
survive now and into the future, leaders must be able to understand
and influence change. The purpose of this paper is to understand
the concept of change by identifying the types of change, discussing
models and strategies for leading change, and identifying the
role of the change agent or leader of change. Finally, a case
study of successfully led change will be used to illustrate
these concepts.
In dealing with the types of change in today’s world, the traditional
models and strategies are likely to be ineffective. Therefore,
a new way of both perceiving change and of leading change will
be proposed. The central premise behind this new paradigm for
viewing change is that, in order to change others, leaders of
change must first change themselves (Quinn, 2000). They must
develop an ongoing awareness of themselves and an ability to
engage in self-reflection regarding their own responses to change,
and they also must be personally committed to change (Nadler,
1998). Both leadership and change occurs within the context
of relationships, and to successfully lead change, the leader
must engage the active involvement of all those who are and
will be affected by the change. Ongoing communication must occur
during all phases of the change process.
The concept of change
Change is a continuous process that requires people, groups,
and organizations to adapt their behavior in order to not only
survive, but to thrive in today’s world. In order to better
understand the dynamic nature of change, one must be aware of
the overall trends or forces in the environment and in society
as a whole. These trends are the forces or challenge that leaders
face when attempting to manage change. The demand for change
results not only from the external environment and increased
competition, and the accompanying search for competitive advantage,
but also from the globalization of markets, the increasing involvement
and knowledge of consumers, the rapid pace of technological
innovation and of information technology, and the alteration
in the structure of corporations through mergers, acquisitions,
and government deregulation (Nadler, 1998). Changes in government
policies also serve as a major impetus for change. Perhaps one
of the biggest drivers of change, other than economics, is the
ever-increasing rate of change. As noted by Kotter (1996), “the
rate of change is not going to slow down anytime soon. If anything,
competition in most industries will probably speed up even more
in the next few decades.” Everything today is in a constant
state of change, and in fact, “even change changes” (Wheatley
& Kellner-Rogers, 1996). This all requires that leaders
learn new ways of influencing change.
Quinn (2000) described two types of change: incremental change
occurs continuously within normal expectations, and is small
and predictable in scope; and transformational change occurs
outside of normal expectations, and is profound in scope. In
a similar way, Nadler (1998) described four types of change,
which are differentiated on the basis of timing (anticipated
or reactive) and scope (incremental or discontinuous). The change
faced by most organizations today is that which is discontinuous
or radical and brought on shifts in the external environment,
as compared to the small or incremental changes that occur all
the time. This discontinuous, radical, or transformational change
requires organizations to change by redefining and redesigning
themselves, by changing their direction, and by making radical
changes in all aspects of their functioning.
Models and strategies for change
Chinn and Benne developed the traditional categorization of
models of change in 1969 (Bennis, Benne, & Chinn, 1969).
Each of these three models is accompanied by assumptions about
how to make change happen and by relevant change strategies.
The empirical-rational model assumes that people are rational,
and will respond to logical arguments in support of change.
Change is based on communicating facts and information about
the change and the need for change, and on offering incentives
to change, i.e., a telling strategy. The power-coercive model
assumes that people are compliant, and will do what they are
told or can be forced to do. Change is based on the use of authority
and imposing of sanctions for failure to change, i.e., a forcing
strategy. The third traditional change model is the normal-reductive
model, which assumes people are social beings who will change
based on a re-definition of norms, values, and behaviors, and
by gaining their participation in the change, i.e., a participating
strategy (Quinn, 2000).
Perhaps the most familiar and widely used model for change
is that proposed by Kurt Lewin (1951). According to Lewin’s
model, all change begins with unfreezing, which occurs when
people feel the need for a change, and follows after disequilibria
is introduced into the system. Moving or implementing the change
occurs when people try out the innovation, and refreezing occurs
when the change becomes part of the system. Although this model
is easy to understand and apply, it assumes a period of stability
at the beginning and end of the model.
The characteristics of change today are such that there are
not any periods of time when things can be considered stable.
Therefore, new models for viewing change are needed.
Leadership and change: The role of the change agent
Anyone who seeks to create change is a change agent (Quinn,
2000). Successful change agents in business lead in ways that
align people’s behavior with the organization’s business objectives,
and also align these behaviors with the organization’s values
in order to achieve a higher purpose or vision for change (Nadler,
1998). Change agents in politics seek to change society. Other
change agents, including parents, teachers, and therapists,
seek to alter the behavior of individuals (Quinn, 2000).
To succeed in leading change, whether the leader is the Chief
Executive Officer (CEO) of a company or an ordinary person,
the leader of change must first recognize the need for change
(Nadler, 1998). The leader of large-scale and radical change
must also recognize that it cannot be accomplished without the
support and help of a committed group of people who understand
the need for change as well as the strategies for accomplishing
it. Success also requires a deep personal commitment and involvement.
The CEO who is leading a large-scale change must personally
take the leadership role; it cannot be delegated to others.
Further, one must be willing to take the necessary risks required
to accomplish change. Leaders of change must be willing to transcend
their usual patterns of behavior. According to Quinn (2000),
leaders must first look within themselves in order to succeed
as a change agent. According to Quinn, this new perspective
on change uses a transforming strategy to influence change.
The Transition State
Before even beginning the process of change, leaders must first
recognize that people generally do not like change, and will
resist it (Nadler, 1998). The transition state is that period
of time between the current state and the future state. It is
characterized by a great deal of instability and uncertainty,
which ultimately leads to stress, not only for the leaders of
change but also for those who are affected by the change. It
is characterized by issues related to power, anxiety, and control.
Although anxiety and stress often lead to improvements in performance,
too much of it can lead to decreases in performance. This is
the period of time where people are concerned about what will
happen to them in the change, and whether or not they will be
able to adapt. One could perceive the actual change as being
an external phenomenon, while the transition is an internal
or psychological phenomenon. The challenge for the leader of
change or change-agent is to manage the transition and overcome
the obstacles to change. Nadler (1998) refers to transition
management as comprising activities associated with “winning
hearts and minds.”
In order to manage the transition, it is essential that change
agents build support among key groups, and include the participation
of those who are involved in and will be affected by the change
throughout all phases of the change. Communication and feedback
must be ongoing. In addition, since change is likely to be resisted,
it is important to create a sense of dissatisfaction with the
current state by convincing people of the need for change. Leaders
must develop and communicate a clear image of the future state
(Nadler, 1998). During the period of time from here to there,
the importance of clear and ongoing communication is key to
the success of the change.
New Model for Change: Nadler’s Congruence Model
Nadler (1998) developed the congruence model as a way of looking
at an organization by understanding the concepts of organizational
fit and organizations as systems. The components of an organization
as a system consist of the inputs into the system (the environment,
organizational resources, and history), a transformational process
(the business strategy), and the outputs (the organization’s
pattern of activities, behavior, and performance). The transformation
mechanism is the operating organization (consisting of the work,
the people, the formal organization, and the informal organization).
The operating organization, as the “heart of the congruence
model”, uses its business strategy to produce the output, all
within the context of the environment, and the organizational
resources and history (p.32). All of these components of the
system must fit together in order for the organization to be
effective. Thus, effective organizations are characterized by
how well the components of the organization fit together. When
there is a tight fit, or congruence, among the components of
the operating organization, a high level of effectiveness and
performance can be achieved. The challenge to executives who
are leading their companies in radical change is to lead in
ways that create alignment among people’ behaviors, values,
and practices and the organizations objectives in order to achieve
a vision for the future.
When using the congruence model as a model for achieving large-scale
organizational change, the leader of change faces challenges
throughout each of the 5 phases of the cycle of change. During
Phase 1, it is important to recognize the change imperative.
This phase begins with a scan of the external environment, and
the recognition of the need for change. The activities that
must occur during this first phase includes making an organizational
diagnosis based on an internal organizational scan and assessment
of organizational congruence. During this phase, it is crucial
to obtain the participation of others in designing the solution.
A clear, compelling vision for where the organization is going
must be articulated during phase 2 of the cycle of change, which
is referred to as developing a shared direction. Themes should
be used as symbols of, and values related to, communicating
the goals of the desired change (e.g., the theme of quality).
During this phase, it is crucial to build support for the needed
change and direction of the organization. The CEO who is the
leader of change must build a coalition of support at the top
of the organization in order to succeed at creating radical
change.
The heart of the change process is in the activities included
in the third phase of implementing the change. The implementation
phase includes the process of strategic choice, which is how
the strategy will be reshaped, and includes the work required
to do it. During the strategic choice process, participation
in redefining the organization’s mission and goals and strategic
alternatives is crucial. This leads to the second part of implementation,
which involves the reshaping or redesign of the organization’s
operating environment. This is where strategy and culture must
be aligned. Cultural change is not only hard to do, but it is
risky. Leaders of change must be able and willing to use appropriate
change interventions in order to change the behavior of people.
Leaders must also be willing to reflect on their own behavior
in order to change the behavior of others. Change interventions
include focusing on leader behaviors and modeling, communication,
education, feedback, and recognition and reward. The implementation
phase also includes the process of strategic selection, which
refers to finding the right people to fill the right positions
in the organization through good staffing decisions and processes.
The task is to find people with the skills and characteristics
needed to implement the new strategy, structure, and operating
environment in a way that creates organizational congruence.
The change cycle does not end once the new strategies and organizational
redesign have been implemented. The challenges of Phases 4 (consolidating
the change) and 5 (sustaining the change) are to maintain the
momentum of change so that it becomes the new way of doing things.
It is during these two phases that executives who are the leaders
of change must not become an obstacle to change by, for example,
losing their enthusiasm and momentum. They must continue to
find new sources of energy, and keep anticipating the need for
further changes that are needed. Continuous assessment and learning
is the central component of the entire cycle of change.
Throughout the entire cycle of change, there are 7 key change
management practices that leaders of change must demonstrate.
First, successful leaders of change must demonstrate their active
personal involvement in the change by publicly demonstrating
their understanding and commitment to the change, i.e., they
must own the change. The ability to communicate the essence
of the change in a clear, concise manner is an important indicator
of owning the change. The second practice is that of aligning
the change, or making the connection between people’s work and
the ultimate objective or direction of the organization. In
order to be energized, people need to know how their work is
contributing to the organization’s overall direction and vision.
Third, the new goals need to be clarified and communicated clearly,
and people need to be held accountable for exhibiting new skills,
knowledge, and abilities. Expectations need to be set so that
people are “stretching” themselves beyond what they were previously
doing. Fourth, the new behaviors must be modeled, i.e., leaders
must “walk the talk.” The leaders of change must consistently
exhibit the new behavioral expectations, and these behaviors
must be consistent with the organizational values. At all times,
the importance of communication must be emphasized. The fifth
practice of communicating must occur continuously as people
need information about how the change is affecting their everyday
lives. Although communicating is important, it must be accompanied
by finding ways to engage people in the change by empowering
them to act and providing ongoing support and encouragement
as they develop new behaviors. Finally, leaders must actively
show their appreciation for people who demonstrate the desired
performance through the use of appropriate rewards and celebrations.
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