ORG521 12/2/2008

Chapter 5
Diagnosis for
Change

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Diagnostic Tools

Diagnostic
Tools The image of the change
Images of
Managing
manager has h an iimpactt on th
the
Change types of tools that may be used.
Advantages
of diagnostic
The different images highlight the
tools
range of reasons why tools like
Di
Diagnostic
ti
these may be utilized they
Models:
-Organization
illustrate the numerous ways
-Components
change can be interpreted.
Readiness for
Change

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Images of Managing Change

Diagnostic Images Diagnostic Tools

Tools
Director Usingg diagnostic
g tools to build up
p yyour own knowledge
g base
Images of and confidence about what needs to change by using models
Managing that specify relationships among variables and pinpoint
Change where change is needed when things are not going well.
Navigator You will find the diagnostic tools attractive; models are ways
Advantages of mapping the environment they describe.
of diagnostic
Caretaker You will be less convinced of the capacity of the diagnostic
tools tools to support radical change, but several of the tools (see,
e.g., PESTEL and scenario analysis) provide insights into the
trends in the external environment that you will have to take
Di
Diagnostic
ti into account.
Models:
Coach You will focus on the diagnostic tools that highlight the goals
-Organization
being sought and the competencies needed to attain them
-Components
Interpreter You will be attracted to the diagnostic tools that emphasize
Readiness for images, framing, and cognitive maps
Change Nurturer Having an interest in emergent strategy, you may remain
unconvinced as to the value of such diagnostic tools.
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Advantages of Diagnostic Tools

Diagnostic
Tools Simplify a complex situation.
Images of Identify
Id tif priorities
i iti for
f attention.
tt ti
Managing
Change Highlight interconnectedness of
Advantages various organizational properties (e.g.,
of diagnostic
tools strategy and structure).
Provide a common language with
Di
Diagnostic
ti
Models:
which
hi h tto di
discuss organizational
i ti l
-Organization characteristics.
-Components

Readiness for
Provide a guide to the sequence of
Change actions to take in a change situation.
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Diagnostic Models: Organization

Diagnostic
Tools
Six-box organizational model:
The key focus here is on six variables purpose,
Images of structure,
t t rewards,
d helpful
h l f l mechanisms,
h i
Managing relationship and leadership. This model is useful
Change to maintain awareness of all areas for
consideration even though one variable may be
Advantages identified as the main area for attention.
of diagnostic 7-S framework:
tools
The 7-S framework: this focuses on seven key
components that affect organizational
Di
Diagnostic
ti
effectiveness structure,, systems,
y , style,
y , staff,,
Models:
skills, strategy and superordinate goals. The
-Organization
interconnectedness of these variables is vital to
-Components
the success of change.
Star model:
Readiness for An organization is effective when the five
Change components of organizational design strategy,
structure, processes and later capability, reward
systems and people practices are in alignment. 5-5

Diagnostic Models: Organization

Diagnostic Congruence model:

Tools
The organization is broken down into four components
task,
task individuals
individuals, formal organizational arrangements
Images of and informal organisation. This is influenced by the
Managing context where the strategy is formulated and the output
Change is then the performance of the organization.
Burke-Litwin model:
Advantages
This model identifies the transformational external
of diagnostic environment, mission and strategy, leadership and
tools organizational culture - and transactional sources of
change.
Four frame model:
Diagnostic
Di ti
This offers four frames for the managers to
Models: conceptualize how the organization operates. These
-Organization frames are structural, human resource, political and
-Components symbolic frames.
Diagnosis by image:
Readiness for
Change This technique allows organizational members to use
images to describe the organizations and this can be
used as a basis for discussion.
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Diagnostic Models: Components

Diagnostic PESTEL Framework:

Tools This analyses the external environment in terms of six factors
ppolitical,, economic,, social,, technological,
g , environmental and
Images of legal.
Managing Scenario analysis:
Change Creating stories of possible future scenarios that are
considered to be vital to the future of the organization
Advantages Gap analysis
of diagnostic This is a tool used for reviewing the organizations position
tools based on where they are and where they want to get to.
Elements of strategy
These are five elements of strategy that are considered
Diagnostic
Di ti mutually reinforcing arenas,
arenas vehicles,
vehicles differentiators
differentiators, staging
and lowest costs through scale advantage. Any misalignment
Models: of these signifies the need for change.
-Organization Strategic inventory
-Components This aims to identify the strategic assumptions of managers
and determine their consistency with the business
Readiness for environment. This determines whether the strategy should be
Change a focal point for change.

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Diagnostic Models: Components

Diagnostic Newsflash exercise:

Tools
This is an exercise that encourages managers to be
very specific and succinct about change and clearer
Images of about the intended outcomes.
Managing
Change
Cultural web:
This provides a way of mapping the organizational
Advantages
culture through seven elements paradigm, rituals and
routines, stories, symbols, control systems, power
of diagnostic structures and organizational structure
tools
Structural dilemmas:
Six possible structural dilemmas that can be
Diagnostic
Di ti encountered during change are diagnosed so areas
that have been traded-off during the change process
Models: can be identified
-Organization
-Components The Boundaryless Organization:
Success is arguably achieved only if four types of
Readiness for organizational boundaries are diagnosed and reduced.
Change These are vertical, horizontal, external and
geographical boundaries.
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Readiness for Change

Diagnostic
Tools
Assessing the organization's readiness to
change can be a mediating variable between
Images of change
h managementt strategies
t t i and d th
the
Managing outcomes of desired strategies.
Change
A perchance audit of the readiness of an
Advantages organization for change can provide an
of diagnostic indication of the likely outcome of a change
tools initiative at a particular point in time. Some
ways of doing this include:
Di
Diagnostic
ti Questionnaires
Models: Stakeholder analysis: This focuses on the position
-Organization of stakeholders in the change process and allows
-Components the manager to be better informed of how to
confront potential issues.
Readiness for Force-field analysis: This identifies factors that are
Change driving forces for change as well as restraining
forces.
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