Page 200 - Managing Change in Organizations

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Management performance and learning
Organizational change

All the above may, of course, give rise to the need for change. However, without
effectiveness in the above three areas other changes will be more difficult to imple-
ment, such as new strategies, new products/services, new markets or client groups
and new technologies. It will be more difficult to measure where we are, to decide
what we wish to achieve, or monitor progress and problems unless these three core
areas of management and organization are on the right lines. It will be difficult to
generate effective new strategies, let alone achieve acceptance of the need for
change, unless the above is right. We introduce changes either to improve effec-
tiveness or to adapt to external changes. The present level of effectiveness of our
organization provides the context within which we wish to introduce change. The
more effective the present organization the readier employees will be to accept
change. Thus we are concerned with both effectiveness and change.

Learning from changing

The effective organization is the one which encourages and supports learning
from change. This means that an open management style, encouraging initiative
and risk, is needed. However, the ability to measure and monitor progress and
problems is also required. What did the managers of ABF Ltd learn from the
changes they introduced? Below are set out the main conclusions of the finance
director:
■ There must be a clear set of objectives, linked to pressing problems which peo-
ple do actually recognize.
■ Planning and participation must focus on specific issues and problems.
■ Employees will respond to a sustained initiative from senior management.
■ It is essential to make improvements in managerial performance at an early
stage.
■ Creating success early on, supported by positive feedback, enables the building
up of self-confidence.

■ Managing change is often a slow and difficult process.
■ Managers must be seen to act on solutions/ideas derived from employees.
■ Monitoring and evaluation are important means of following through with
change seeking further improvement.
■ Managing change is a learning process for all concerned.
Looking at the ABF Ltd case study in retrospect it is clear that the company rep-
resents a good example of our ‘map’ of change. There was a systematic diagnosis
which did lead to an organization-wide change programme. Culture change was
very much to the forefront of this case. It is perhaps not surprising that bench-
marking does not feature in the case – it was not a feature of change programmes
in the early 1980s. What the case study does provide (both here and in Chapter 16)
is an excellent example of the dynamics of change and managers’ role in major
change. The lessons are as relevant today as they were in 1993. But looking back,
it is probably true that a company dealing with these problems today would have

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