Chapter 11

1. Chapter 11 Change management and building the learning organisation © Oxford University Press Southern Africa, 2008. All rights reserved.

2. Learning outcomes After reading this chapter you should be able to: • identify the forces that trigger change in organisations • describe the barriers to organisation change and how to overcome them • specify three important steps to successfully implement change within organisations • discuss the role of the learning organisation and its benefits to all stakeholders • describe the five sub-systems within a learning organisation • identify the role of the Chief Learning Officer (CLO) within an organisation

3. Chapter content • opening case: the role of HR in re-engineering and change at Siemens Rolm • introduction • causes (triggers) of organisational change • barriers to change • recommendations on how to overcome the barriers • the Strategic Organisational Change (SOC) framework • establishment of a learning organisation. It addresses the characteristics and benefits of this type of organisation • model to be used to establish a learning organisation • role of the Chief Learning Officer (CLO)

4. Change management • change is inevitable if a company is to remain competitive in the turbulent business environment of today • change impacts on the human resource management approach within a company

5. INTERNAL TRIGGERS • technology • changing nature of customers • people • administrative structures • EXTERNAL TRIGGERS • political • economic • social • technology The triggers to organisation change

6. Barriers to organisation change • individuals and organisations are not inherently resistant to change • only put up barriers when they perceive the change to be threatening • react to the threat and not the change • whether change will be perceived as threatening or not, will depend on the way it is introduced • 3 main areas of common barriers to change according to Gilley et al: • organisation system (structure, policies, procedures etc.) • leadership/management (philosophies, capabilities and actions) • human dimension • common barriers within these 3 areas

7. Barriers to organisation change • causes of resistance to change: • failure to understand the problem • the solution is disliked because an alternative is preferred • a feeling that the proposed solution will not work • the change has unacceptable personal costs • rewards are not sufficient • fear of being unable to cope with the new situation • the change threatens to destroy existing social arrangements • sources of influence and control will be eroded

8. Barriers to organisation change • causes of resistance to change: • new values and practices are repellent • the willingness to change is low • management's motives for change are considered suspicious • other interests are more highly valued than the new proposals • the change will reduce power and career opportunities • symptoms of resistance to change: withdrawal, aggression, arguing, negativism, blaming, gossip, slowdown of work, sabotage of the change effort and increased absenteeism

9. Overcoming barriers to change

10. Overcoming barriers to change

11. Overcoming barriers to change

12. Overcoming barriers to change • certain skills need to be possessed by change managers if they are to function effectively and efficiently: • social relationship skills • communication skills • persuasive skills • presentation skills • problem-solving skills • planning skills

13. Overcoming barriers to change • Higgs & Rowland - managers should also possess the following eight change management competencies to be successful: • change initiation • change impact • change facilitation • change leadership • change learning • change execution • change presence • change technology

14. A strategic organisational change (SOC) framework • three essential questions of any change: • Where are we now? • What do we need to change? • How will we implement those changes and build in dynamism? • getting ready for change • working with the politics of change • supporting emotional transitioning • planning the implementation details • fostering creativity and spontaneity • inspiring continuous learning and evolution

15. SOC framework

16. The learning organisation • change-capable organisations inspire continuous learning = learning organisations • learning organisation = is a term that has been used to characterise an enterprise where learning is open-ended, takes place at all levels and is self-questioning • organisation learning = a descriptive device to explain and quantify learning activities and events taking place within an organisation • difference between learning organisation and organisation learning: • in learning organisation individual learning activities feed and integrate with broader and deeper learning processes in the organisation, this is not the case in organisation learning

17. Characteristics of a learning organisation • learning organisation possesses the ability to continuously adapt, renew and revitalise itself in response to the changing environment, a vital component for organisational change • characteristics of learning organisation: • learning is accomplished by the organisation as a whole • employees within the organisation recognise the importance of current and future success of ongoing learning • learning is a continuous, strategically used process that is integrated and runs parallel to work • there is a focus on creatively and generative learning in the organisation

18. Characteristics of a learning organisation • characteristics of learning organisation: • systems thinking is fundamental in a learning organisation • an organisation climate exists that encourages, rewards and accelerates individual and group learning • employees network in an innovative manner that resembles a community both inside and outside the organisation • everyone is driven by a desire for quality and continuous improvement • employees have uninterrupted access to information and data

19. Benefits of a learning organisation • anticipate and adapt more readily to environmental influences • accelerate the development of new products, processes and services • become more proficient at learning from competitors and collaborators • expedite the transfer of knowledge from one part of the organisation to another • learn more effectively from its mistakes

20. Benefits of a learning organisation • make greater use of employees at all levels of the organisation • shorten the time required to implement strategic changes • stimulate continuous improvement in all areas of the organisation • attract the best workers • increase worker commitment and creativity

21. Building a learning organisation • becoming a learning organisation is absolutely a prerequisite to remain competitive • requires the cooperation between numerous stakeholders. It also needs a person, normally known as a Chief Learning Officer (CLO), to oversee this process • the learning organisation model

22. The learning organisation model

23. The learning subsystem • changes in skills, insights, knowledge, attitudes and values acquired through self-study increase in knowledge, skills and competencies accomplished by and within groups enhanced intellectual & productive capability gained through commitment

24. Types of learning • adaptive learning (when we reflect on past experiences and then modify future actions) • anticipatory learning (acquiring knowledge from envisioning various futures and determining ways to achieve that future) • action learning (reflecting on reality on a present, real-time basis, and applying the knowledge toward developing the individual, group and the organisation)

25. Skills needed for initiating & maximising learning

26. Other important issues • the speed of learning - how quickly the organisation is able to complete each learning cycle • the depth of learning - the degree of learning the organisation achieves at the end of the cycle • the breath of learning - how extensively the organisation is able to transfer the new insights and knowledge • learning component can make a contribution to the company • organisation component can make a contribution to becoming a learning organisation

27. Organisation subsystem company's hopes, goals & direction for future • to change to the new focus, a company's structure and strategies must change dramatically • 4 components: departments, levels & configurations organisation's values, beliefs, practices, rituals & customs action, plans, methodologies, tactics & steps employed to achieve a company's vision & goals

28. The people subsystem • people are: • pivotal to learning organisations - only people have the capacity to learn • the agents that take information and transform it into valuable knowledge for personal and organisational use • people subsystem in the learning organisation consists of the following components: • managers/leaders - carry out coaching, mentoring and modelling roles and as such are responsible for enhancing learning opportunities for the people around them • employees - empowered and expected to learn, plan for their future competencies, and take action and risks to solve problems

29. The people subsystem • learning organisation also recognises that customers can be a fertile source of information and ideas and thus should be closely linked with organisation learning systems • other external groups that are also important include: • business partners and alliances that can share their competencies and knowledge • suppliers and vendors • community groups (social, educational and economic agencies - share in providing and receiving learning) • strategies for empowering and enabling people within the learning organisation • knowledge to play important role in learning organisation

30. collection of existing data & info from inside & outside the organisation use and assessment of knowledge by members of the organisation it generating new knowledge through a number of different processes movement of information by mechanical, electronic and interpersonal means coding & preservation of the organisation's valued knowledge for easy access by employees anytime analysing data & reconstructing, validating and inventorying it

31. The technology subsystem • supporting, integrated technological networks and information tools that enable access to, and exchange information and learning • technical processes, systems and structures for collaboration, coaching, coordination and other knowledge skills • encompasses electronic tools and advanced methods of learning • two major components: • technology for managing knowledge which refers to computer based technology that gathers, transfers and codes information • technology for enhancing learning which involves the utilisation of video, audio and computer-based multimedia training for the purpose of delivering and developing knowledge and skills • Technology to play important role in learning organisation

32. The Chief learning officer (CLO) • also known as the chief knowledge officer (CKO) • characteristics of a chief learning officer, they must: • have circulated through the company and must have developed a holistic perspective • be able to energise the organisation and function as cheer-leaders to build momentum behind the knowledge initiatives • be able to withstand a multitude of pressures • feel rewarded by the accomplishments of other people • have a good relationship with the head of HR

33. The role of the chief learning officer • Align/integrate diverse functions or groups • Best practices/bench­marking • Business objectives and performance • Career planning/staff or professional development • Change manager role • Communications/build networks/use personal influence • Employee retention/ recruitment programmes • Continuous and/or consistent learning systems highlighted • Corporate or in-house universities/learning lab • Create/lead expert teams • Culture development for learning and/or knowledge • Customer service orientated • Employee orientation programme • Executive education and/or action learning

34. The role of the chief learning officer • Financial knowledge management • Identify critical areas for improvement/needs analyses • Knowledge-content activities (capture, share and retain) • Knowledge-structure (tools, manage infrastructure) • Leverage corporate-wide learning and/or knowledge • Organization effectiveness consulting/OD activities • Partnerships with senior management/others • Project management activities • Sales/marketing/business development • Strategic planning and implementation • Technology for learning/knowledge • Training and education/ workshops/retreats/meeting leader • Visionary/champion for organizational learning and/or KM