BUS 404

Managing Organizational Change

ISTANBUL BİLGİ UNIVERSITY

Department of Business Administration
BUS 404 Managing Organizational Change
Spring 2023-2024

Lecturer: Dr. Emre EKŞİ

1
Agenda

• Introduction
• Structure and operation of class

• Why organizations need to change?

• How organizations respond to change?
• What is change management?

• Q&A

2
Introduction

[Experience cont.]
[Personal Summary]
GLOBAL BİLGİ (TURKCELL)
April 2006 – May 2008
Strategy Practitioner | Researcher on Population Ecology and Innovation | Digital
Transformation Visioner | Father of 2 son | Technology, Space, History, Gastronomy
Head of Project Management Office & Six Sigma Black Belt
and Modern Art Lover | Proud to be a Black Eagle
• Guide project managers and owners at new project initiations
• Manage PMO activities interactively and directing project managers on project management
[Education]
techniques and standards
• Analyze and report project portfolio to top management
2011 – 2021 Istanbul Technical University
• Establish and maintain project management methodology and culture among company
Ph.D Management Engineering
• Conduct project performance evaluations with project owners and top management
Thesis: “Evolutionary Mechanisms of Imprinting in Business Clusters”
• Manage corporate BPR Project
• Manage 6 Sigma Black Belt projects according to DMAIC methodology to achieve an increase in
2003 – 2008 Istanbul Technical University
efficiency. (ie. Maximization of adherence)
M.Sc. Management Engineering
Thesis: “Intellectual Capital Based Innovation Capability Model”
TURKISH DO & CO
May 2008 – Feb 2014
1998 – 2002 Gazi University Ankara
B.Sc. Industrial Engineering
Project Manager
• Track industry trends, develop business plans, execute strategic projects
• Analyze, identify infrastructure and capacity needs, develop
[Experience]
• Manage design, tender, and monitor phases of new facility investment projects
• Develop, execute business architecture in IT projects
AMERICAN SYSTEMS REGISTRAR
July 2002 – July 2005
FLO MAĞAZACILIK ve PAZARLAMA A.Ş
Registration Manager / Lead Auditor / Consultant
• Conduct process based audits and manage consultancy projects (Completed more than
Feb 2014 - present
100 audits from different industries)
Head of Strategic Planning & Business Development
• Develop and execute new certification and accreditation projects (ex. Pharmacy, EU
Projects)
• Direct and control all strategic planning and business development activities
• Train and certify new QMS Lead Auditors
• Lead the strategic business planning cycles
• Provide consultancy services and trainings on “Process Based Management System”
• Identify, evaluate, negotiate and manage strategically important business opportunities
• Evaluate M&A targets or partnerships for strategic fit, investment options
• Lead Digital Transformation agenda
3
Session_1: Two Truths and a Lie!
- Think three statements about yourself
- All of the statements won’t be true — two of the statements given should be
true and one should be a lie
- Opponent (Chosen by lecturer) will guess which statement is made up
- Tips: Try not to say your lie last, use simple lies that seem believable

Session_2: 60 seconds challenge

4
Structure and operation of class
Learning Outcomes
Upon successful completion of the course, students will be able to;

• Why organizations need to change?

• Understand the key issues, considerations, influence, and effective and efficient management of organizational change in a constantly changing and dynamic external
environment,
• Analyze the effect of environmental change on organizational structures,

• How organizations respond to change?

• Identify organizational development and learning processes,

• What is change management?

• learn to apply the organizational change,

• explain change objectives and strategies,
• calculate participation and involvement in change,
• interpret the role of change leaders and agents,
• overcoming resistance to change.

Lecture and Seminar Format

• The workshops will be used for students to review a book or article, discuss case studies.
• In some weeks, seminar hours will be allocated to guest speakers from the private sector to make a speech on a particular topic and to simulate some ideas.

Participation

• Students are expected to attend class and workshops by guest speakers, prepare for each class beforehand, ask thoughtful questions, respond respectfully to peers, and engage in all class
exercises.
• The instructor expects interactive discussion and encourages questions, feedback, and comments.

Conduct in lectures

• Honesty and trust are important to all of us as individuals.

5
Structure and operation of class

1) Participation & Assignments

- Active involvement to in class discussions, group presentation debates, case exercises

- 2 assignments will be given during the term, for each assignment, students will be required to write 2 page papers on concepts learned and how they apply in organizational settings

2) In Class Group Presentation (Case Studies)

- Students will be assigned to 3-4 person group for purposes of an in-class presentation
- Groups will be assigned either a case study or an article
- Each group will prepare for a 30 min in-class session consist of 20 min presentation 10 min Q&A
- All of the class are responsible to answer questions related to articles and case studies presented in class

For Case Studies, presentations will address:

1) What is happening in the case, what is the change problem

2) Describe the stakeholders (present a stakeholder map)
3) Explain the existing approache(s), patterns you see in the change process and describe change vehicles utilized with their respective strengths and weaknesses
4) Answer case questions and if applicable, specify appropriate course of action linking with concepts discussed in the class
5) Prepare 3 questions for the class discussion

For Articles, presentations will address:

1) A brief summary of the idea

2) Explain the supporting evidences presented
3) Explain the outcomes and main argument of author(s), what are the practical implications
4) How the article relate to other topics of change management
5) Prepare 3 questions for the class discussion

*The seminar dates will be announced in the forthcoming weeks before the seminar week. Attendance at seminars is obligatory.

6
Structure and operation of class
Week-1: Introduction
Learning Objectives: Understand the structure and operation of class, Why organizations Week-6: Roles in Change Management: Champions, Change Agents, Stakeholders
need to change? How organizations respond to change? And What is change management?
Learning Objectives: Understanding roles of agents, identify key stakeholders, building
social contracts
Week-2: Drivers for Change
Readings:
Learning Objectives: Understand the pressures and on organizations for change, understand Leading Change Ch.4 Creating Guiding Coalition
changing environments and resource dependencies Leading Change Ch.7 Empowering Employees for Broad-Based Action

Readings:
Week-7: Leading Individual Transition in Change Management
Organizational Change Ch.1 Organizations and their changing environments
Learning Objectives: Understand what happens at individual level of change, impacts on
cognitive and affective experiences and behaviors
Week-3: Challenge of Change Readings:
(William-Bridges Model)
Learning Objectives: Understand complexities, challenges and enablers in managing Bridges, William & Mitchell, Susan. (2000). Leading Transition: A New Model for
organizational change Change. Leader to Leader Journal. 16.

Readings: (The Stages of Grief - Kübler-Ross)

Leading Change Ch.1 Transforming Organizations: Why Firms Fail Kubler-Ross, E. (1969) On Death and Dying. Macmillan, New York.
Leading Change Ch.2 Successful Change and Force that Drives It
(ADKAR Model)
Hiatt, Jeff & Hiatt, Jeffrey. (2006). ADKAR: A Model for Change in Business,
Week-4: Role of Vision and Alignment in Organizational Change Government and Our Community.

Learning Objectives: Understand importance of alignment, methods for top team Deliver Assignment-1
alignment, change communication among managerial levels
Week-8: Midterm Exam
Readings:
Leading Change Ch.5 Developing a Vision and Strategy
Leading Change Ch.6 Communicating Change Vision Week-9: Reinforcing Mechanisms in Change Management

Learning Objectives: Understand how to sustain change, overcome tendency to revert back
Week-5: Change Dynamics and Resistance to Change to initial state

Learning Objectives: Address “stress points” for change efforts, understand factors driving Readings:
resistance to change Leading Change Ch.8 Generating Short Term Wins
Leading Change Ch.9 Consolidating Gains and Producing More Change
Readings: Skinner, B. F. (1963). Operant behavior. American Psychologist, 18(8), 503–515
Maloney, C. (2010). The Secret to Accelerating Diffusion of Innovation: The 16%
Leading Change Ch.3 Establishing Sense of Urgency
Rule Explained. Innovate or Die.
Krantz J (1999) Comment on “challenging ‘resistance to change’”. J Appl Behav Sci
35(1):42–44
Week-10: Change Management in NGOs (In-Class Case Analysis )
Lawrence PR (1969) How to deal with resistance to change. Harv Bus Rev 47(1):4–14
Maurer R (1996) Using resistance to build support for change. J Qual Particip 19(3):56 Learning Objectives: Understand change management hurdles in NGO context

The Case of NAACP

Week-6: Roles in Change Management: Champions, Change Agents, Stakeholders 7
Structure and operation of class

Assessment:

No Component Percentage
Points
1 Participation & Assignments 10
2 In Class Group Presentation (Article or Case Studies) 20
3 Mid-term Exam 30
4 Final Exam 40

Course Material
Books:
Senior, B.; Swailes, S; Carnall C. (2020). Organizational Change (6th Edition). Pearson.
Kotter, J. (2012). Leading Change. Boston, MA: Harvard Business Review Press.

Other:
Presentations, case studies

8
https://www.youtube.com/watch?v=Jeg3lIK8lro

9
10
Why Organizations need to change?

11
Why Organizations need to change? / Systems Theory

The system theory views an organization as a system Input of an organization includes the elements that, in any
that is composed of different parts, and for goal point in time, constitute the set of “givens” with which it
achievement all these parts needed to work has to work with.
collectively.

Output refers to the pattern of activities, behaviour, and

performance of the system that is ultimate purpose of the
system to produce.

Output of the system must align with the purpose and needs
of the environment. If the environment does not need these
outputs, the organization shall cease to exist.

12
Why Organizations need to change? / Systems Theory

Transformation (Throughput)

Individual – An individual and his personality is the basic part of the system. Every individual’s attitude and motives determine his expectation when he
participates in the organization system.

Formal Organization –

«A formal organization is the interrelated pattern of jobs which are designed to regulate the actions of individuals and other resources in the organization.
Therefore, the individual must perform his job and the organization must fulfill his expectations on successful completion of the job. Usually, there is
incongruency between the goals of the organization and those of its members.»

Informal Organization –

In any organization, an individual interacts significantly with the informal group to which he/she belongs. This informal group, typically, demands the individual
to conform to its laid-down behavior patterns. The individual conforms in order to accomplish his goals by associating with the informal group. Further, since the
two interact, they modify each other’s behavior.

Status and Roles –

In every organization, individuals are expected to play certain roles. These roles determine their status. There are times when the demands on an individual from
the formal and informal organizations contradict each other. At such times, there is a role conflict. Therefore, it is necessary that the two roles fuse together. This
fusion process acts to wield divergent elements together in order to preserve the integrity of the organization.

Setting –

Another important component is the surroundings (software or hardware) in which an individual performs a job. Therefore, it is important to carefully examine
the interaction in the complex man-machine system. One cannot approach the problem in a purely technical manner and needs to consider the social,
psychological, as well as physiological conditions of members. Only then can one fit the machines to men. 13
Why Organizations need to change?

Newton’s first law: Inertia

An object at rest remains at rest, or if in motion, remains in

motion at a constant velocity unless acted on by a net
external force.

14
Why Organizations need to change?

What is Entropy ?

 Law of Entropy
All systems “run down” and disintegrate unless they import more
energy than they use.

 Law of Negative Entropy

For its survival, a system is required to produce more output for
certain enough inputs in order to continue the state of self-
maintenance and keep the system from “running down”.

15
Why Organizations need to change?

An organization is more inclined to change over

which the law of negative entropy
is necessarily applicable.

16
Why Organizations need to change?

 For the law of negative entropy to be true for an organization the

organizations are required to be acting as an open system.

 Open systems require two kinds of feedback, External Feedback

and Internal Feedback.

17
Why Organizations need to change?

Open System Theory of Organization

The open system organizations amidst the
dynamic environment have no other option but
to respond to the environmental needs and
Organization adapt accordingly.

Environment
and Input Through-put Output Users
Environmental
Trends

Internal interface feedback External interface

mechanism. feedback mechanism
What does it specify? What does it specify?

18
Why Organizations need to change?

How Environment affects organizations?

Environment and
Environmental Trends We are delivering change in Volatile, Uncertain, Complex and Ambiguous
(VUCA) times, with pressures on our teams and individuals from increasing:

Demands — from customers, shareholders, regulators and staff;

Challenges — often trying to deliver more with less;

Environment includes people, customers, Competition — traditional and new competitors, substitute and disruptive
suppliers, competitors, social and solutions;
economic forces, government and
regulatory bodies, technological conditions, Complexity — new products and services don’t just span traditional channels, but
financial institutions, other organizations, many new, sophisticated channels and technologies (ecosystems, networks, social
and special interest groups. media, smart tv, digital assistants, AI, IoT, Chatbots, Augmented Reality, etc) and
they continuously need to evolve and take advantage of emerging technologies and
capabilities;

Human centeredness — any change must be built around the customers’ and
staff’s existing lifestyle, aspirations, knowledge and take into account the latest
psychological models and understanding of consumer and staff behaviours.

19
Why Organizations need to change?

How Environment affects organizations?

Environment and
Environmental Trends  It introduces demands
Environmental demands include, customer requirements and
preferences determine the quantity, price, and quality of the
offerings the organization can successfully provide.
 It imposes constraints
Environment includes people, customers, Environmental constraints include input limitations like
suppliers, competitors, social and
economic forces, government and
insufficient capital, technology, raw materials and HR,
regulatory bodies, technological conditions, economic and political disorders, legal prohibitions rooted in
financial institutions, other organizations, government regulations, and market competitions.
and special interest groups.
 It provides opportunities
Such as new market possibilities resulting from technological
innovation, government deregulation etc.

20
 Why Organizations need to change?

Does every organization need to change?

When organizations can afford status quo?

1. When they act as a close system i.e. 2. When organisations reside in a relatively 3. When organizations have monopoly in the
static environment market
 Law of negative entropy is not necessarily
applicable to them and they can survive When they are not required to compete When they are not required to compete
without exchanging output for the input. with other organizations with other organizations
They reside in protected environment and
resources intake by them is converted into
low-grade-energy/waste.
 They are insulated from fluctuations of
demand and supply. Though there seems no
perfectly closed system organization,
organization theories presented by Max
Weber present organizations that are closer
to this concept.

21
How Organizations respond to change?

22
 How Organizations respond to change?

Scope of Change

X-Axis: Scope of Change

In its everyday operation, an organization functions within a set of

predefined parameters, these include its values, beliefs, strategies, and
Urgency

operational plans.
These parameters can be known as an operational framework or the frame.

The changes an organization undergoes can be within this frame, as in the

case of incremental changes, where the framework of parameters maintain a
close harmony with their pre-change position, or they can move beyond the
frame, as these parameters undergo major transformations, as is the case in
discontinuous change.

Y-Axis: Urgency
According to Kanter (1985) “change is exciting when it is done by us,
threatening when it is done to us”

Some changes are initiated, not in response to events, but in anticipation of

external events that may occur. Some other changes are clear in response to
an event or a series of events. These are called reactive changes.

23
 How Organizations respond to change?

Tuning Adaptation Re-orientation Re-creation

(Incremental – Anticipatory) (Incremental – Reactive) (Discontinuous - Anticipatory) (Discontinuous - Reactive)

(Frame Bending Change) (Frame Breaking Change)

Finding better way of achieving the Incremental and reactive response to Fundamental changes to organization Fundamentally redefining the
strategic vision pressing external events identity, vision, strategy, and values. enterprise such as its identity, vision,
strategy, and values.
- No immediate requirement for - Change is triggered in reaction to - It is executed in advance of a crisis
change external events - A key role of change managers is to - Re-creations occur in reaction to a
- A position-maintenance strategy, - The situation is generally one of: create a sense of urgency and build desperate situation, where time and
- Maintain close congruence between change or suffer a competitive cost. commitment. resources are strained.
the various sub-systems of the - Does not involve fundamental - It usually involves changing the - Change will be wild, all
organization and its environment. change through-out organization core elements of the company, comprehensive and irreversible
- Does not occur in response to - Frame of the organization is - Low chance of long-term survival.
immediate problem changed, modified, and reshaped, - The firm will need to literally re-
Examples but hopefully not broken create itself with a fast,
Examples - An advantage of reorientation is the - focused and furious effort, usually
Replace «as is» state with new «to be» luxury of time over just a few months.
Improves the ‘as is’ rather than i.e re-organization efforts, small-size
creating something new i.e increasing acquisitions, carve-outs, related and Examples Examples
sales volume, simple process un-related diversification, IT
improvements, team development and implementations that do not radically Replace «as is» state with new «to be» Recreation of strategy, plant closures,
problem-solving efforts impact people’s work or require a i.e re-organization efforts, carve-outs, turnaround projects to return the firm
significant shift in culture or behavior related and un-related diversification, to profitability, re-structuring projects
IT implementations to avoid insolvency
Organization is reactive but still can
determine destination clearly, can
‘manage’ the transition

24
How Organizations respond to change?

25
What is change management ?

26
What is change management ?

27
 Q&A

[email protected]

28