What is the relationship between having a sense of identity apart from your work when going through UNCERTAIN (DIFFICULT) seas

“This impressive book on change is an essential read for any professional manager who is serious about getting to grips with the important issues of making change happen.”

Dr Jeff Watkins, former MSc Course Director, University of Bristol

“There has long been a need for a readable, practical but theoretically underpinned book on change which recognizes a multiplicity of perspectives. I thoroughly recommend it.”

Professor Colin Carnall, Associate Dean, Executive Programme, Warwick Business School, University of Warwick

“I’ll definitely be placing copies on a couple of desks at White City…” Nicky Campbell, Presenter, Radio Five Live and BBC1’s Watchdog

“This book is a great resource for managers thrown into the midst of change who need to gain understanding of what happens when you try to make significant changes in a business, and how best to manage people through it.”

Andy Newell, former Organizational Effectiveness Director, Allied Domecq plc

“I commend it highly. It has a good coverage of relevant theoretical work while at the same time giving plenty of practical examples. It is written in an accessible style that engages the reader and it is full of useful ideas without

being overly prescriptive or formulaic.” Philip Sadler, author and Vice President of Ashridge Business School

Making Sense of Change Management is the classic text in the field of change management. It is aimed at anyone who wants to understand why change happens, and what needs to be done to make change a welcome rather than a dreaded concept. However, this book is not a “one size fits all” simplistic panacea to all change, whatever the circumstances. Instead, it offers considered insights into the many frameworks, models and ways of approaching change and helps the reader to apply the right approach to each unique situation. Topics include:

Written for academics and professionals alike, Making Sense of Change Management identifies and offers explanations of all current models of change, as well as practical guidelines and examples showing the reader why change can go wrong – and how to get it right.

Esther Cameron and Mike Green help organizations and executives to manage and lead change. They work in both the private and public sectors and use a variety of coaching, consultancy and workshop interventions to support organizational development. Mike tutors in Leadership and Change at Henley Management College and Esther lectured on change management for the University of Bristol for ten years. Both are established authors in the area of change and leadership and are co-authors of Making Sense of Leadership (also published by Kogan Page).

Kogan Page 120 Pentonville Road London N1 9JN United Kingdom www.koganpage.com

Kogan Page US 525 South 4th Street, #241 Philadelphia PA 19147 USA

I S B N 978-0-7494-5310-7

9 7 8 0 7 4 9 4 5 3 1 0 7

£27.50 US $45.00

Business and management

A complete guide to the models, tools & techniques of organizational change 2nd edition

Esther Cameron & Mike Green

MAKING SENSE OF CHANGE MANAGEMENT

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ISBN: 978-0-7494-5310-7

• individual change; • team change; • organizational change; • leading change; • structural change;

• mergers and acquisitions; • cultural change; • IT-based process change; • complex change; • how best to implement change.

making sense change mana_aw:Layout 1 4/3/09 12:11 Page 1

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Praise for the first edition of Making Sense of Change Management

‘I commend it highly. It has a good coverage of relevant theoretical work while at the same time giving plenty of practical examples. It is written in an accessible style that engages the reader and it is full of useful ideas without being overly prescriptive or formulaic.’ Philip Sadler, author of a number of acclaimed business titles and former chief executive of Ashridge Business School

‘I really enjoyed this book. I like the straightforward approach, the inclusion of the author’s opinion and the insight provided by the case studies. This book will be very useful for those business managers in my organization who need to prepare themselves for tackling major organizational change.’ Andy Houghton, former Head of Organization Development, Retail Direct, Royal Bank of Scotland Group

‘There has long been a need for a readable, practical but theoretically under-pinned book on Change which recognized a multiplicity of perspectives. By combining the behavioural, humanistic, organizational and cognitive perspectives and by helping the reader make sense of what each perspective brings to understanding Change, this book should help students and practitioners. By linking in work on personality tests such as MBTI™ the book breaks new ground from a practitioner point of view not least because these tests are widely used in practice. I thoroughly recommend it.’ Professor Colin Carnall, Associate Dean, Executive Programme, Warwick Business School, University of Warwick

‘If you’re interested in successfully managing and leading change, then read this book! It not only covers change from both the individual and organizational perspective, but also increases the number of options available to you.’ Judi Billing, Director of IDeA Leadership Academy, Improvement and Development Agency

‘Change is a huge thing wherever you work. The key is to make change happen, and make it happen well – with everyone on side, and everyone happy. This book provides an extremely stimulating and accessible guide to doing just that. There are a few people at the Beeb who could do with this. I’ll definitely be placing copies on a couple of desks at White City.’ Nicky Campbell, Presenter Radio Five Live and BBC1’s Watchdog

‘This book is a great resource for managers thrown into the midst of change, who need to gain understanding of what happens when you try to make significant changes in a business, and how best to manage people through it. The authors have tackled a complex topic in a lively and engaging way, leading readers through the maze of theory available and offering just the right amount of practical advice.’ Andy Newall, former Organizational Effectiveness Director, Allied Domecq plc

‘This impressive book on change is an essential read for any professional manager who is serious about getting to grips with the important issues of making change happen.’ Dr Jeff Watkins, former MSc Course Director, Management Research Centre, University of Bristol

‘This practical handbook, combining contemporary management theory with very practical suggestions, is an indispensable tool for any manager involved in change processes. And aren’t we all…’ Adriaan Vollebergh, Director, Corus Metal Services Europe

‘This is a book which lives up to its title. By combining a guide to the ideas of key thinkers on change and useful tips for making change happen, it really does provide a toolkit to help us to make sense of change. It is useful to see a focus on the individual, team and organizational levels, and in particular, on the role of the leader in the change process. It is written in a way that makes the book interesting to read both at length as well as to dip into.’ Richard McBain, Director of Studies Distance Learning MBA, Henley Management College

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MAKING SENSE OF CHANGE

MANAGEMENT

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A complete guide to the models, tools & techniques of organizational change

Esther Cameron & Mike Green

MAKING SENSE OF CHANGE

MANAGEMENT

London and Philadelphia

2nd edition

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Publisher ’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and authors cannot accept responsibility for any errors or omissions, however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the mate- rial in this publication can be accepted by the editor, the publisher or any of the authors.

First published in Great Britain and the United States in 2004 by Kogan Page Limited Reprinted 2004 (twice), 2005, 2006, 2007 (three times) Second edition 2009

Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accor- dance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses:

120 Pentonville Road 525 South 4th Street, #241 London N1 9JN Philadelphia PA 19147 United Kingdom USA www.koganpage.com

© Esther Cameron and Mike Green, 2004, 2009

The right of Esther Cameron and Mike Green to be identified as the authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

ISBN 978 0 7494 5310 7

British Library Cataloguing-in-Publication Data

A CIP record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication Data

Cameron, Esther. Making sense of change management : a complete guide to the models, tools and

techniques of organizational change / Esther Cameron and Mike Green. — 2nd ed. p. cm.

Includes bibliographical references and index. ISBN 978-0-7494-5310-7

1. Organizational change–Management. 2. Teams in the workplace–Management. 3. Reengineering (Management) 4. Information technology–Management. I. Green, Mike, 1959- II. Title.

HD58.8.C317 2008 658.4�06–dc22

2008034689

Typeset by Saxon Graphics Ltd, Derby Printed and bound in India by Replika Press Pvt Ltd

vii

Contents

Acknowledgements x

Introduction 1 Who this book is aimed at 2; The basic content of the book 3; Why explore different approaches to change? 3; Overview of structure 7; Message to readers 8

PART ONE: THE UNDERPINNING THEORY 9

1 Individual change 12 Introduction 12; Learning and the process of change 14; The behavioural approach to change 19; The cognitive approach to change 25; The psychodynamic approach to change 32; The humanistic psychology approach to change 40; Personality and change 50; Managing change in self and others 53; Summary and conclusions 60

2 Team change 62 Introduction 62; What is a group and when is it a team? 63; Why we need teams 65; The types of organizational teams 66; How to improve team effectiveness 74; What team change looks like 78; The leadership issues in team change 82; How individuals affect team dynamics 86; How well teams initiate and adapt to organizational change 91; Summary and conclusions 95

3 Organizational change 97 How organizations really work 98; Models of and approaches to organizational change 109; Summary and conclusions 134

4 Leading change 138 Introduction 138; Visionary leadership 142; Roles that leaders play 153; Leadership styles and skills 159; Different leadership for different phases of change 166; The importance of self-knowledge and inner resources 173; Summary and conclusions 178

PART TWO: THE APPLICATIONS 181 Strategic change process 182; Overview of structure 182

5 Restructuring 187 Reasons for restructuring 189; The restructuring process 190; Restructuring from an individual change perspective: the special case of redundancy 209; Enabling teams to address organizational change 214; Conclusion 221

6 Mergers and acquisitions 222 The purpose of merger and acquisition activity 223; Lessons from research into successful and unsuccessful mergers and acquisitions 228; Applying the change theory: guidelines for leaders 242; Summary 253

Contents

viii

7 Cultural change 255 Guidelines for achieving successful cultural change 259; Case study one: aligning the organization 262; Case study two: rebranding the organization 268; Case study three: creating an employer brand 275

8 IT-based process change 281 Strategy and IT 284; The role of IT management 287; The need for IT change managers 292; Achieving process change 296; Changing the information culture 303; New rules for a new age 305; Summary and conclusions 306

PART THREE: EMERGING INQUIRIES 309

9 Complex change 310 Introduction 310; When is change complex? 311; Understanding how complexity science applies to organizational change 312; Tools that support complex change 321; The role of leaders in complex change 327; Summary and conclusions 330

10 The right way to manage change? 331 Introduction 331; What the research says 332; Different approaches to getting ready for change 338; Leading change 343; How do you know whether change is working? 345; Summary and conclusions 349

Conclusion 351 The importance of peripheral vision 351; Finding the space to reflect 352; How to get in touch with the authors of this book 353

References 354 Index 363

Contents

ix

Acknowledgements

We want to start by acknowledging the many people in organizations with whom we have worked over the years. You are all in here in some shape or form! We have worked with many generous, courageous and inspiring managers of change who we thank for the privilege of working alongside them to make real change happen. Without these experiences the book would be a dry catalogue of theory, devoid of life and character.

Then of course there are our colleagues who challenge and support us every day as we reflect on our work, and make decisions about what to do next. Particular thanks go from Mike to Andy Holder, Mhairi Cameron, Philip Darley and Tim Hockridge, who probably do not know how much they are appreciated, and to colleagues and MBA students at Henley Management College for a never-ending supply of ideas and challenges. Esther wants to specially acknowledge Anne-Marie Saunders and Alex Clark for their wisdom, humour and friendship, and their generosity in sharing their expertise. Many of their ideas and thoughts are embedded in this book. Also, thanks go to Esther ’s learning set who have been a source of strength throughout the last few years, and who really boosted the leadership chapter in particular. Thanks too to Bill Critchley for his ideas on linking metaphor and change, which form the bedrock of the organizational change chapter.

x

Really special thanks go to Ailsa Cameron for her wonderful pictures, which soften the pages so beautifully.

We also want to thank from the bottom of our hearts the hard-working reviewers who squeezed the time out of their busy agendas to read draft versions of these chapters. Special thanks go to Louise Overy, Steve Summers, Duncan Cameron, Mervyn Smallwood, Peter Hyson and Richard Lacey for their timely and thoughtful suggestions throughout the iterative process of writing the book.

Our families have helped too by being very patient and supportive. So love and thanks to Jane, Lewin, Oliver and Brigit. Love, and thanks too to Duncan, Ailsa, Ewan and Katka.

We also want to thank each other. We have learnt a lot from this rich and sometimes rocky process of writing a book together. We do not always see things the same way, and we do not work from an identical set of assumptions about change, so the book is the culmination of much healthy airing of views. Let’s hope we are still writing, talking and enjoying each other ’s company many years from now.

Note: The Myers-Briggs Type Indicator™ and MBTI™ are registered trade- marks of Consulting Psychologists Press. Anyone interested in knowing more about Myers-Briggs should contact Consulting Psychologists Press in the US (800-624-1765) and OPP in the UK (08708 728 727).

Acknowledgements

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xii

Introduction

I balance on a wishing well that all men call the world. We are so small between the stars, so large against the sky,

and lost amongst the subway crowd I try and catch your eye.

L Cohen

This book is about making sense of change management. The world we live in continues to change at an intense rate. Not a day goes by, it seems, without another important discovery or boundary-pushing invention in the scientific fields. The economics of glob- alization seems to dominate much of our political and corporate thinking, while the shadow side of globalization – refugees, exploitation, terrorism and the

like – develops at an equally alarming pace. The rate of change and discovery outpaces our individual ability to

keep up with it. The organizations we work in or rely on to meet our

1

needs and wants are also changing dramatically, in terms of their strate- gies, their structures, their systems, their boundaries and of course their expectations of their staff and their managers.

WHO THIS BOOK IS AIMED AT

Making Sense of Change Management is aimed at anyone who wants to begin to understand why change happens, how change happens and what needs to be done to make change a more welcoming concept. In particular we hope that leaders and managers in organizations might appreciate a book that does not give them the one and only panacea, but offers insights into different frameworks and ways of approaching change at an individual, team and organizational level.

We are mindful of the tremendous pressures and priorities of practising managers – in both the private and the public sector – and Making Sense of Change Management is our attempt at making their lives that little bit easier. It is also our attempt at convincing them that addressing the issues that cause change to be so poorly managed in organizations will lead not only to more satisfying experiences for them, but to more fulfilling lives for their staff.

Framework: an essential supporting structure; Model: a simplified description of a system; Tool: a thing used in an occupation or pursuit; Technique: a means of achieving one’s purpose.

Concise Oxford Dictionary

Students of learning – be they MBA or MSc programme members, or indi- viduals who just want to do things better – will hopefully find some models, tools and techniques which bridge the gap between the purely academic and the more pragmatic aspects of management theory and practice. The intention is to help them to make sense of the changes that they will undergo, initiate and implement.

Making sense of change management

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THE BASIC CONTENT OF THE BOOK

We focus our attention on individual, team and organizational change with good reason. Many readers will be grappling with large-scale change at some point, which might be departmental, divisional or whole organizational change. Whatever the level or degree of organizational change, the people on the receiving end are individual human beings. It is they who will ultimately cause the change to be a success or a failure. Without looking at the implications of change on individuals we can never really hope to manage large-scale change effectively.

In addition, one of the themes of organizational life over recent years has been the ascendancy of the team. Much of today ’s work is organized through teams and requires team collaboration and team working for it to succeed. Very little has been written about the role of teams in organiza- tional change, and we have attempted to offer some fresh ideas mixed with some familiar ones.

A thread running through the book is the crucial role of leadership. If management is all about delivering on current needs, then leadership is all about inventing the future. There is a specific chapter on leadership, but you will find the importance of effective leadership arising throughout.

In some respects the chapters on individual, team and organizational change, together with the chapter on leadership of change are free- standing and self-contained. However, we have also included application chapters where we have chosen a number of types of change, some of which, no doubt, will be familiar to you. These chapters aim to provide guidelines, case studies and learning points for those facing specific orga- nizational challenges. Here the individual, team and organizational aspects of the changes are integrated into a coherent whole.

For this new edition we have added two new chapters, one on managing complex change and one on whether there’s a single ‘right’ way of managing change.

WHY EXPLORE DIFFERENT APPROACHES TO CHANGE?

Managers in today ’s organizations face some bewildering challenges. Paul Evans (2000) says that 21st century leadership of change issues is not simple; he sees modern leadership as a balancing act. He draws our atten- tion to the need for leaders to accept the challenge of navigating between

Introduction

3

opposites. Leaders have to balance a track record of success with the ability to admit mistakes and meet failure well. They also have to balance short term and long term goals, be both visionary and pragmatic, pay attention to global and local issues and encourage individual account- ability at the same time as enabling team work.

It is useful to note that while some pundits encourage leaders to lead rather than manage, Paul Evans is emphasizing the need for leaders to pay attention to both management and leadership. See the box for a list of paradoxes that managers at Lego are asked to manage.

THE 11 PARADOXES OF LEADERSHIP THAT HANG ON THE WALL OF EVERY LEGO MANAGER

• To be able to build a close relationship with one’s staff, and to keep a suitable distance.

• To be able to lead, and to hold oneself in the background.

• To trust one’s staff, and to keep an eye on what is happening.

• To be tolerant, and to know how you want things to function.

• To keep the goals of one’s department in mind, and at the same time to be loyal to the whole firm.

• To do a good job of planning your own time, and to be flexible with your schedule.

• To freely express your view, and to be diplomatic.

• To be a visionary, and to keep one’s feet on the ground.

• To try to win consensus, and to be able to cut through.

• To be dynamic, and to be reflective.

• To be sure of yourself, and to be humble.

Source: Evans (2000)

We believe that anyone interested in the successful management of change needs to develop the ability to handle such paradoxes. Throughout this book we offer a range of ideas and views, some of which are contradictory. We would urge you to try to create a space within your- self for considering a variety of perspectives. Allow your own ideas and insights to emerge, rather than looking for ideas that you agree with, and

Making sense of change management

4

discarding those you do not care for. It is highly probable that there is some merit in everything you read in this book!

With so many choices and so many dynamic tensions in leadership, how does a manager learn to navigate his or her way through the maze? We have developed a straightforward model of leadership that acts as a strong reminder to managers that they need to balance three key dimensions. See Figure 0.1.

Managers usually learn to focus on outcomes and tangible results very early on in their careers. This book is a reminder that although outcomes are extremely important, the leader must also pay attention to underlying emotions, and to the world of power and influence, in order to sustain change and achieve continued success in the long term. Leaders of change need to balance their efforts across all three dimensions of an organizational change:

Introduction

5

Outcomes Developing and delivering

business outcomes

Emotions Enabling people &

culture to adapt

Interests Mobilizing influence, authority and power

Organizational context

Personal leadership

Figure 0.1 Three dimensions of leadership Source: developed by Mike Green, Andy Holder and Mhairi Cameron

• outcomes: developing and delivering clear outcomes;

• interests: mobilizing influence, authority and power;

• emotions: enabling people and culture to adapt.

Leaders are at the centre of all three. They shape, direct and juggle them. One dimension may seem central at any time: for example, developing a strategy. However, leadership is about ensuring that the other dimensions are also kept in view. The three balls must always be juggled successfully.

In our experience, if you as leader or manager of change are unaware of what is happening (or not happening) in each of the three dimensions then you will have ‘taken your eye off the ball’. Your chances of progressing in an effective way are diminished.

The early chapters of this book give the reader some underpinning theory and examples to illustrate how people initiate change and react to change at an individual level, when in teams, or when viewed as part of a whole organization. This theory will help managers to understand what is going on, how to deal with it and how to lead it with the help of others.

Making sense of change management

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In tr

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Type of change In d

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Individual xxx x x xx x x x x

Team xxx x x xx x x x x

Organizational x x x xxx x x xx xx xx xx xx xx

Leading change x x x x xxx xx x x x xx

Table 0.1 Where to read about individual, team, organizational change and leading change

The later chapters take real change situations and give specific tips and guidelines on how to tackle these successfully from a leadership point of view.

OVERVIEW OF STRUCTURE

We have structured the book principally in three parts. Part One, ‘The underpinning theory’, comprises four chapters and

aims to set out a wide range of ideas and approaches to managing change. Chapter 1 draws together the key theories of how individuals go through change. Chapter 2 compares different types of team, and exam- ines the process of team development and also the way in which different types of team contribute to the organizational change process. Chapter 3 looks at a wide range of approaches to organizational change, using orga- nizational metaphor to show how these are interconnected and related. Chapter 4 examines leadership of change, the role of visionary leadership, the roles that leaders play in the change process and the competencies that a leader needs to become a successful leader of change.

These chapters enable the reader to develop a broader understanding of the theoretical aspects of individual, team and organizational change, and to learn more about a variety of perspectives on how best to be a leader of change. This lays firm foundations for anyone wanting to learn about new approaches to managing change with a view to becoming more skilled in this area.

Part Two, ‘The applications’, focuses on specific change scenarios with a view to giving guidelines, hints and tips to those involved in these different types of change process. These chapters are illustrated with case studies and make reference to the models and methods discussed in Part One. Chapter 5 looks at organizational restructuring, why it goes wrong, and how to get it right. Chapter 6 tackles mergers and acquisitions by categorizing the different types of activity and examining the learning points resulting from research into this area. Chapter 7 examines cultural change by describing some diverse case studies and extracting the learning points, and Chapter 8 attempts to shed some light on IT-based process change, why it so often goes awry and what organizations can do to improve on this.

Part Three is a new section that we have included for the second edition. One of the clear things that has emerged for us in helping others lead and

Introduction

7

manage change is the tension between overly planning and controlling change on the one hand, and the fact that change is often not simple enough to plan or control on the other. Chapter 9 looks at the whole area of complexity science and how it can inform your approach when managing complex change. Chapter 10 looks at how and why many change efforts fail to deliver all that they set out to do. In this chapter we ask the question ‘Is there one right way of managing change?’ and (without giving anything away right now) if not, explores how we can approach change at least with some confidence in managing it successfully.

Please do not read this book from beginning to end in one sitting. It is too much to take in. We recommend that if you prefer a purely pragmatic approach you should start by reading Part Two. You will find concrete examples and helpful guidelines. After that, you might like to go back into the theory in Part One to understand the choices available to you as a leader of change.

Likewise, if you are more interested in understanding the theoretical underpinning of change, then read Part One first. You will find a range of approaches together with their associated theories of change. After that, you might like to read Part Two to find out how the theory can be applied in real situations.

MESSAGE TO READERS

We wish you well in all your endeavours to initiate, adapt to and

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