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Ensuring Successful Organizational Change

Ensuring Successful Organizational Change. Ronald L. Jacobs, Ph.D. The Ohio State University. 7 June 2008. ). Where is Columbus, Ohio?. T he WDE graduate program seeks to prepare advanced practitioners, leaders, and scholars to address the following societal issues:

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Ensuring Successful Organizational Change

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  1. Ensuring Successful Organizational Change Ronald L. Jacobs, Ph.D. The Ohio State University 7 June 2008

  2. ) Where is Columbus, Ohio?

  3. The WDE graduate program seeks to prepare advanced practitioners, leaders, and scholars to address the following societal issues: • Prepare to enter or re-enter the workforce, • Undertake formal, informal, and non-formal learning opportunities to improve workforce performance, • Adapt to changes that affect workforce competitiveness, and • Undergo life transitions related to workforce participation.

  4. Definition . . . Human Resource Development is the process of improving organizational performance and workplace learning through employee development, organization development, and career development programs. Ronald L. Jacobs (2008)

  5. HRD Components Employee Development – training and educational programs that provide the competencies to meet current and future work expectations. Organization Development – human and structural processes to facilitate change among individuals, groups, and organizations. Career Development – educational and experiential programs to match the needs of organizations and the needs and interests of individuals.

  6. HRD Process Assess/Analyze Design/Implement Evaluate/Improve Strategic Planning Needs Assessment Performance Analysis Work Analysis ED Programs OD Programs CD Programs Results Behavior Perceptions Project Management

  7. Organizational Change Future State Of the Organization Current State Of the Organization

  8. Most case study reports tend to describe the situation during the initial success period and before the eventual decline and collapse of the program (Mirvis and Berg, 1977). • Goodman and Dean (1983) examined the persistence of change in selected organizations in which change programs had been successfully introduced and where positive benefits had initially been identified. Four to five years later, only one third of the projects remained to any discernible degree, while the others were in decline or non-existent.

  9. Jacobs and Hruby-Moore (1998) reported a failed cost-benefit analysis study. The study showed a negative cost-benefit ratio at the conclusion of the intervention. • A. T. Kearney (1999) reported that managers in 294 European medium-sized companies reported that only one in five change efforts were viewed as being successful. The remaining efforts made some initial improvements, but had failed to sustain them, or made no demonstrable improvements whatsoever. Two-thirds of reengineering efforts in Britain failed and that less than half of the TQM programs showed any demonstrable results at all.

  10. Estimates from lean manufacturing consultants state • that 80 percent of projects fail, requiring companies • to determine whether to begin again or continue using • a traditional manufacturing approach. The truth about organizational change – most planned change efforts are not successful.

  11. Institutionalizing Organizational Change . . . Having the change become a part of the on-going everyday activities of the organization.

  12. Institutionalizing Change Framework • Organization Characteristics • Are the organization’s goals, • management, and • design aligned? • Are leaders committed to the change? • Is the organization ready for change? • Institutionalization Outcomes • Work behaviors • Job outcomes • Process outcomes • Organization norms, values, • culture • Institutionalization Processes • Develop the competence to meet new expectations • Ensure self-efficacy to carry out the expectations • Build commitment in terms of words and action • Connect new processes with existing processes • Change Characteristics • Do the change goals identify the desired state? • Has a change management process been identified? • Are resources available • to implement the change? Cross-Cultural Effects Jacobs (2001) adapted from Cummins and Worley (2004)

  13. HRD Challenge Unfreezing Moving Refreezing Effective HRD practice must consider institutionalization processes when assisting organizations during times of change. HRD programs Institutionalization processes

  14. Training appears to be a major way for organizations to institutionalize change. • Organizations are using a wide range of training methods to institutionalize change, but the most frequent and most effective is reported to be OJT. • Organizations should review existing strategies and explore the ways to make HRD strategies more integrated with other organizational functions to ensure better success in institutionalizing change. • The first empirical research on institutionalizing organizational change. Findings will hopefully trigger more research interest on this topic in future. Jacobs, R., & Osman-Gani, A. (2005). Institutionalization of organizational change: An exploratory study of HRD interventions used by Singaporean, US, Japanese, and German companies. Human Resource Development International.

  15. Cascade Training “Cascade training is the process of providing the competence necessary to ensure the institutionalization of organizational change.” “Information flows from one group to another until it reaches the final destination, similar to that of a waterfall.”

  16. Hierarchical • Process • Role • Project • Based on the competence needs of each employee level. • Coordinated such that the training outcomes of one group are reconciled with other groups. • Uses an array of training approaches, both on the job and off the job.

  17. Hierarchical – The training follows the vertical structure of the organization. Ensures that everyone organization-wide understands the change and the three competence keys: 1. Keep doing this. 2. Stop doing that. 3. Start doing this.

  18. Process – The training follows the chain of supplier-customer relationships through the organization. Ensures that cross-functional groups connected through work processes understand the change and acquire the competence to respond accordingly. D C B A

  19. Role – The training follows peer relationships across the organization. Ensures that individuals understand changes in expectations and acquire the competencies from a credible source.

  20. Project – The training follows groups, internal and external, engaged in achieving a common goal. Ensures that the various stakeholders understand the change and its consequences.

  21. Institutionalization Processes • Develop the competence to meet new expectations • Ensure self-efficacy to carry out the expectations • Build commitment in terms of words and action • Connect new processes with existing processes

  22. Ronald L. Jacobs, Ph.D. Professor, Workforce Development and Education http://education.osu.edu/rjacobs/ Director, UNEVOC – U.S., Center on Education and Training for Employement http://www.cete.org/UNEVOC-US/default.asp Email: Jacobs.3@osu.edu

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