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JÜRGEN JANSSENS

Internal Service delivery,

Project Portfolios,

Outsourcing activities,

Technological Progress …

Success is always bound by

anticipation of

Organizational Change.

Change types: Organizational Change

A good understanding of the different transformation types is essential in the preparation and

management of Projects and Evolutions inside an Organization. From all the different types covered in

other articles of our Newsletter, we will have a closer look at Organizational Change. We will highlight a

couple of cases and bridge towards models that are key to understand change and be prepared.

One organization, many situations

Organizational Change is a change in the Organization, which is either the result of a change in Processes,

or the result of a change of Strategy and therefore leading to a vaster series of changes, of which a

change in Processes is a part of.

In certain situations, the need to encompass Organizational Change is rather straightforward. For

departments mainly serving internal customers, for example, it is essential to be adaptive or at least on

par with internal evolutions. If the Organization changes or a new division is created, it is important that

the provided internal services and belonging staffing still match this new reality.

A transversal IT organization in a Manufacturing company with different divisions, for instance, needs to

be anticipative enough to provide solutions that are in line with business evolutions in and specific

needs of each division, while keeping the company-wide interests in mind as well. If one of these

divisions decides to give more internal independence to some of its subdivisions, the IT organization’s

service portfolio has to be lean enough to be in synch with the needs of these ‘new’ internal customers,

while still ensuring a steady development of the motivation and

capabilities of its own people.

Other - less obvious - situations require however also attention for

Organizational Change.

When moving to the off- or nearshoring of activities, for instance, the

financial side is often thoroughly prepared through a cost/benefit

analysis. Specialized literature (Moe, Smite, Hanssens, 2014) indicates

however that attaining the intended benefits requires to set clear expectations and, especially, to adapt

the organization to the new way of working.

Note that Organizational Change is also applicable for projects with a strong technological component.

Companies that want to embrace the potential of new technology to stay ahead in the competition

need new collaborative combinations within the existing organizational framework, or the set-up of new

teams. It might require people to change their way of working or the way they are organized. It might

even involve investment in talent and the development of new skills (Janssens, 2016).

In 2012, for instance, a British hospital benefitted from supercomputers usually used to monitor

hundreds of health indicators from F1 drivers. To master this information and think about new

possibilities -while ensuring service continuity - new organizational processes and skilled staff where key.

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JÜRGEN JANSSENS

Overall, early attention for change is thus crucial to reap the expected benefits. As indicated by Terry

Cooke (Cooke-Davies, 2014), it isn’t easy to manage projects and programs that involve a high degree of

change. Yet, with business models being obliged to adapt at high speed, it is virtually impossible for

organizations to implement their strategy without undertaking the strategic initiatives that require

substantial behavioral, cultural and organizational change. Taking this into account will win the ‘hearts

and minds’ of those who must behave differently to deliver and sustain the strategic benefits.

Models to Understand & Prepare

Generally speaking, it is said that the success (of organizations effective at the management of

organizational change) occurs through standardized project management practices, engaged sponsors

who actively rally senior management, and managing people through organizational change. (PMI, 2014)

Specific models exist that help to understand and tackle the challenges. Some focus on personal change

(as it influences organizations from the inside), others focus specifically on the organizational level.

For the human reaction to change, Fisher’s graph of personal transition remains an important source of

inspiration, especially as quick reference. Similarly, the Adkar model provides an action-oriented

framework to facilitate individual change. Users of this model have the outcome-orientation to change

that enables personal transitions and achievement of organizational results.

Dilt’s model of ‘Logical Levels of Change’ is discussed in the first article of this Newsletter.

Two other models worth getting familiarized with for Organizational Change matters are Lewin’s Change

Management model, and Prosci’s five Tenets of Change Management.

Unfreeze, Change, Refreeze

Lewin’s model is based on 3 levels of Change: Unfreeze, Change, Refreeze.

In essence, the model draws an analogy with an ice cube. If you have a large ice cube, but actually want

an ice, what do you do? First you melt the ice to make it prone to change. Then you mold the iced water

into the shape you want. Finally, you solidify the new shape. By looking at change as a process with

distinct stages, you can prepare yourself for what is coming and make a plan to manage the transition.

By recognizing these three distinct stages of change, you can define and plan concrete actions to

implement the required change. You start by creating the motivation to change (unfreeze). You move

through the change process by promoting effective communication and empowering people to embrace

new ways of working (change). The process ends when you bring the organization back to stability

(refreeze), which is key to create confidence from which to embark on to the next change.

Five Tenets of Change Management

In complement of Lewin’s practical approach, Prosci's Five Tenets of Change Management translate the

value of change management in terms of Project success.

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JÜRGEN JANSSENS

“As organizational

frictions and/or

challenges are

unavoidable, failed

strategic initiatives

have an impact far

beyond the financials”

They aim at providing a clear and simple answer to the question, “Why change management?”. The five

tenets allow to take a step back and consider the need for change management at its core. This creates

a starting point for people that need change management foundations. At the same time, it is a catalyst

for experienced change agents that need tools to build buy-in for change management within their

organization. In short, the five tenets are:

- We change for a reason

- Organizational change requires individual change

- Organizational outcomes are the collective result of individual change

- Change management is an enabling framework for managing the people side of change

- We apply change management to realize the benefits and desired outcomes of change

If change management is embedded in the real life context (the first four

tenets), and the impact of change management on project success shown

(the fifth tenet), a completely different conversation will be possible with the

concerned people.

The essentials

Wise financial management is part of the basics of projects and organizations.

But as organizational frictions and/or challenges are unavoidable, failed

strategic initiatives have an impact far beyond the financials. When an organization embarks on change,

systems, processes, and perhaps even the mindset and mission will be impacted. Failure to successfully

integrate and enable change leaves an organization losing its competitive advantage.

Attention for Change is thus essential.

The earlier mentioned examples illustrate some concrete scenarios where a change in strategy or a

change in processes lead to Organizational Change. The discussed models help in understanding the

core of this Change, be it from the personal angle, or directly from the organizational angle. To reap

benefits of the expected Change, it is advised to apply the key take-aways of these models to the

specific situation one is in, and to translate the generic actions into enablers for the expected future.

In our next Newsletter we will go a step further. We will see what influence the different actors have in

this process, and how to take it into account in the management of projects, programs or organizations.

Information about the Author: https://be.linkedin.com/in/janssensjurgen |

Information about TETRADE Consulting: http://www.tetrade.be/

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JÜRGEN JANSSENS

References & Further reading:

Clear, T., Raza, B., MacDonell, S.G., (2013). A Critical Evaluation of Failure in a Nearshore Outsourcing Project: What

Dilemma Analysis Can Tell Us, ICGSE, 2013 IEEE 8th International Conference on, Bari, Italy: IEEE, pp. 178-187.

Cooke-Davies, T. (2014), in: PMI: Cabrey, T., Haughey, A. (2014). Enabling Organizational Change through Strategic

Initiatives, Retrieved Feb 2016 on http://www.pmi.org/~/media/PDF/Publications/Enabling-Change-Through-

Strategic-Initiatives.ashx .

Fisher, J. (2012), The Process of Transition, Retrieved Jan 2016 on

http://www.businessballs.com/freepdfmaterials/fisher-transition-curve-2012bb.pdf .

Janssens, J., (2016). Blending Technology, Human Potential, and Organizational Reality: Managing Big Data

Projects in Public Contexts, in : Aggarwal, A. (2016). Managing Big Data Integration in the Public Sector, (pp. 107-

137). Hershey, PA: IGI Global.

Laloux, F. (2014). Reinventing Organizations A Guide to Creating Organizations Inspired by the Next Stage in

Human Consciousness, Leuven, Belgium: LannooCampus.

Moe, N.B., Smite, D., Hanssens, G.K. (2014). From offshore outsourcing to insourcing and partnerships: four failed

outsourcing attempts, Empirical Software Engineering, October 2014, 19, pp 1225-1258.

PMI: Cabrey, T., Haughey, A. (2014). Enabling Organizational Change through Strategic Initiatives, Retrieved Feb

2016 on http://www.pmi.org/~/media/PDF/Publications/Enabling-Change-Through-Strategic-Initiatives.ashx .

Prosci, (2015). The Adkar model, Retrieved Jan 2016 on https://www.prosci.com/adkar/adkar-model.

Todnem By, R., (2005). Organisational change management: A critical review, Journal of Change Management,

Vol5, Issue 4, Oxford, UK: Routledge., pp. 369-380