The Process of

Organizational Change
Diagnosing Organizations
Collecting and Analyzing Diagnostic
Information
Designing Interventions
Implementing Change
Evaluating OD Interventions

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 What is Diagnosis?
• Broadly, the process of understanding how the
organization is functioning
• The client and the OD Practitioner, internal or
external, working together to identify the focus of
the issue or problem
• The process of the OD Practitioner, using
diagnostic models and various methods for
gathering data, collecting and analyzing diagnostic
information about the issue or problem

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 Open Systems Model

Environment

Inputs Transformations Outputs

• Information • Social Component • Goods
• Energy • Technological • Services
• People Component • Ideas

Feedback
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 Properties of Systems

• Inputs, Transformations, and

Outputs
• Boundaries
• Feedback
• Equifinality
• Alignment

4
 Collecting and Analyzing
Diagnostic Information
• The data collection and
feedback cycle
• Methods for collecting data
• Sampling

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 Data Collection - Feedback Cycle

Core Activities

Planning to Collecting Analyzing Feeding Following

Collect Data Data Data Back Data Up

Figure 5.2: Feedback and Organization Development (Nadler

1977).

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 Data Gathering
• Argyris:
– “Without valid information it would be
difficult for the client to learn and for the
interventionist to help . . . Valid
information is that which describes the
factors, plus their interrelationships, that
create the problem for the client system.”
• Helps us work with the client on a valid fact-
based diagnosis and develop a fact-based
intervention to solve the problem

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 Data Gathering
• Helps to distinguish between the
presenting problem versus the
underlying problem
–Distinction between the
technical/business problem and
the organizational and personal
problem
–Understand how the problem is
being managed
8
 Common Data Gathering
Techniques
• Interviews
• Focus Groups
• Surveys
• Observation
• Unobtrusive Measures
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 Major Methods
for Collecting Data
• Questionnaires
• Interviews
• Observations
• Unobtrusive methods

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 Questionnaires
• One of the most efficient ways to collect data
• Contain fixed-response questions
• Administered to large numbers of people
simultaneously
• Can be analyzed quickly
• Permit quantitative analysis
• Data can easily be fed back to employees

11
 Questionnaires
• Major Advantages
– Responses can be quantified and summarized
– Large samples and large quantities of data
– Relatively inexpensive
• Major Potential Problems
– Little opportunity for empathy with subjects
– Predetermined questions -- no change to change
– Over interpretation of data possible
– Response biases possible

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 Interviews
• Interviews may be highly structured
–Resembling questionnaires
• Interviews may be highly
unstructured
–Starting with general questions
that allow the respondent to lead
the way
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 Interviews
• Distinction between confidentiality and
anonymity
• Confidential: No one will know what was
said.
• Anonymous: No one will know that it
was you.
• Emphasize interest in interviewee, not in
one particular answer

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 Interviews
• Use a partner – one asks, one writes
• Develop an interview guide – but let
the conversation flow where it will
• Choice: census vs. sampling
• Summary for client: use of quotes?

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 Interviews
• Major Advantages
– Adaptive -- allows customization
– Source of “rich” data
– Empathic
– Process builds rapport with subjects
• Major Potential Problems
– Relatively expensive
– Bias in interviewer responses
– Coding and interpretation can be difficult
– Self-report bias possible

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 Observations
• A more direct way of collecting
data
• Observe organizational
behaviors in their functional
settings

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 Observations
• Decision to share your
identity/purpose?
• Share ideas with a colleague to avoid
bias or use two or more observers
• Amount and detail of note-taking in
the moment vs. later on privately
• Audio or video recording

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 Observations
• Major Advantages
– Collects data on actual behavior, rather than
reports of behavior
– Real time, not retrospective
– Adaptive
• Major Potential Problems
– Coding and interpretation difficulties
– Sampling inconsistencies
– Observer bias and questionable reliability
– Can be expensive

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 Unobtrusive measures
• Data is collected from secondary sources
• Records of absenteeism, tardiness,
grievances, quantity and quality of
production or service, financial
performance, correspondence with key
stakeholders
• Helpful in diagnosing group and
individual outputs
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 Unobtrusive Measures
• Examples: Historical data, official documents, Web
chat, discussion boards, databases, physical
environment, language
• Usually already exist apart from the OD engagement
• Can be time and resource intensive; be careful to
define what question you’re answering
• Can contradict or substantiate (validate) information
obtained through other means
• Multiple interpretations: invite the client or
organizational members to help explain what the data
mean
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 Unobtrusive Measures
• Major Advantages
– Non-reactive, no response bias
– High face validity
– Easily quantified
• Major Potential Problems
– Access and retrieval difficulties
– Validity concerns
– Coding and interpretation difficulties; for example, the
information is mostly general and not specific to an
individual

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 Focus Groups
• Similar issues to interviews
– Confidentiality vs. anonymity
– Focused interview guide
– Facilitator and scribe
• Homogeneous vs. heterogeneous
• Watch for less vocal participants
• Audio or video recording
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 Surveys
• Combine with focus group before or
after
• Census vs. sampling
• Anonymity of respondents
• Careful wording of questions
• Statistical accuracy; careful how much
statistical info to present to client

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 How do you determine the right data-
gathering approach?

“Facts” from the Our interpretation of Data we would Best suited method
client’s point of what might be causing need to have to
view the client’s presenting validate our
problem interpretation

Anderson, Development Organization

25
(4th ed.). Sage Publishing, 2017.
 Choosing the Right Strategy
• All methods of data gathering have advantages
and disadvantages. How to choose?
– Investment required: time and money
– Access
– Relevance
– Accuracy
– Flexibility

• “Select a method that fits with the time available,

the motivation of the client, and the severity of
the problems. Don’t overinvest.” (Peter Block,
Flawless Consulting)
26
 Sampling
• Population vs. Sample
• Importance of Sample Size
• Process of Sampling
• Types of Samples
– Random
– Convenience

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 Feeding Back Diagnostic
Information
• Determining the context of the
feedback
• Possible effects of the
feedback
• Characteristics of the feedback
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 Determining the
Content of Feedback
• Relevant • Limited
• Understandable • Significant
• Descriptive
• Verifiable • Comparative
• Timely • Unfinalized

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 Possible Effects of Feedback
Feedback occurs

No NO Is the energy created

Change by the feedback?
YES Energy to use
What is the direction data to identify and
Energy solve problems
to deny or of the feedback?
fight data
Do structures and
Failure, NO processes turn energy
frustration, into action?
Anxiety, no change
resistance, YES
no change

Change
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 Characteristics of the
Feedback Process
• Attention to the following will enable the OD
Practitioner to move forward to design a
successful intervention
– Motivate everyone to work with the data
– Structure the meeting for focus and clear effective
communication of the message
– Ensure appropriate membership
– Be clear about what can be changed and what cannot
– Use effective process skills to support positive
outcomes
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 Interventions
Designing Effective
Interventions

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 Definition of Interventions

An intervention is a set of
sequenced planned actions or
events that are intended to
help the organization
increase its effectiveness.
33
 Designing Interventions
• Criteria of an effective intervention
• How to design effective interventions
• Contingencies related to the change
situation
• Contingencies related to the target of
change

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Criteria of an Effective Intervention
• Criteria that define an effective intervention
are:
– The extent to which it fits the needs of the
organization
– The degree to which it is based on causal
knowledge of intended outcomes; and
– The extent to which it transfers competence
to manage change to organization members

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 How to Design Effective Interventions
• No ‘one size fits all’ recipe
• Needs careful attention to detail
• Not enough yet known about what causes
change
• Two sets of contingencies that impact on the
design of successful intervention need to be
considered
– Contingencies related to the change situation
– Contingencies related to the target of change
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 Contingencies Related
to the Change Situation
• Readiness for change
• Capability to change
• Cultural context
• Capabilities of the change
agent
37
 Contingencies Related to
the Target of Change
• Strategic issues
– Strategic interventions
• Technology and structure issues
– Technostructural interventions
• Human resource issues
– Human resource management interventions
• Interpersonal issues/human process issues
– Interpersonal interventions

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 Focus of the Intervention
• Strategic issues
– Focus on the big picture ensuring that the organization is
competitive, well-positioned in the market and ready to
meet new challenges
• Technology and structure issues
– Focus on ensuring that the design structure and the
technology are aligned to the strategic goals of the
organization
• Human resource issues
– Focus on ensuring that personnel practices are aligned to
recruiting and retaining the best people for the organization
• Interpersonal issues
– Focus on developing people and their interpersonal skills
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 Intervention Overview

• Strategic Interventions
• Technostructural Interventions
• Human Resources Management
Interventions
• Human Process Interventions /
Interpersonal Interventions

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 Strategic Interventions
• What functions, products, services,
markets
• How to gain competitive advantage
• How to relate to the environment
• What values will guide organizational
functioning

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 Strategic Interventions
• Transformation Change
– Integrated Strategic Change
– Organization Design
– Culture Change
• Continuous Change
– Mergers and Acquisitions
– Alliances and Networks
• Trans-organizational Change
– Self-designing Organizations
– Organization Learning and Knowledge Management
– Built to Change Organizations 42
Technostructural Interventions
• How to divide labor
• How to co-ordinate departments
• How to produce products or
services
• How to design work

43
 Technostructural Interventions
• Structural Design
• Downsizing
• Reengineering
• Parallel Structures
• High Involvement Organizations
• Total Quality Management
• Work Design

44
 Human resource management
interventions
• How to attract competent people
• How to set goals and reward
people
• How to plan and develop people’s
careers
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 Human Resources Management
Interventions
• Goal Setting
• Performance Appraisal
• Reward Systems
• Coaching and Mentoring
• Career Planning and Development
• Management and Leadership
• Managing Work Force Diversity
• Employee Wellness Programs

46
 Interpersonal Interventions
• How to communicate
• How to solve issues
• How to make decisions
• How to interact
• How to lead
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 Human Process Interventions
• Process Consultation and Team
Building
• Third-party Interventions (Conflict
Resolution)
• Organization Confrontation Meeting
• Intergroup Relationships
• Large-group Interventions

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 Implementing Change
• Motivating change
• Creating vision
• Developing political support
• Managing the transition
• Sustaining momentum
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Change Management Activities

Motivating Change

Creating Vision

Developing Effective
Political Support Change
Management
Managing the Transition

Sustaining Momentum

Figure 5.6: Activities contributing to effective change – source from Waddell, Cummings & Worley (2011)

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 Motivating Change
• Identifying the need for change
– A continual process of assessment
• Creating a culture which is ready for change
– Change is inevitable and a certainty; there will
always be a need for improvement; the process of
change is always for the betterment of the
organization and the people within
• Managing resistance to change
– Resistance can be positive and constructive if
there is empathy and support, communication and
involvement
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 Motivating Change
• Creating Readiness for Change
– Sensitize the organization to pressures for change
– Identify gaps between actual and desired states
(reveal discrepancies between current and desired
states)
– Convey credible positive expectations for change
• Overcoming/Managing Resistance to Change
– Provide empathy and support
– Communicate
– Involve members in planning and decision making
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 Creating a Vision
• Describing a desired future state
–Mission and value outcome; future
directions
• Energizing commitment
–Should be exciting, connected to
the past, present and future…and
compelling
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 Creating a Vision
• Construct the Envisioned Future
– What are the bold and valued outcomes?
– What is the desired future state?
• Discover and Describe the Organization’s
Core Ideology
– What are the core values that inform members
what is important in the organization?
– What is the organization’s core purpose or
reason for being?
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 Developing Political Support
• Assessing change agent power
– OD Practitioner’s sources of power – knowledge,
personality and others’ support
• Identifying key stakeholders
– Who are the other powerbrokers?
• Influencing stakeholders
– ‘playing it straight’, social networks and utilizing
the formal system

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 Sources of Power and
Power Strategies for Change Agents
Individual Sources of Power Power Strategies
Knowledge Playing it Straight
Knowledge Playing it Straight

Others’ Support Using Social

Others’ Support Networks

Going Around the

Personality Going Around
Formal the
System
Personality Formal System

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 Managing the Transition
• Activity Planning
– What’s the “roadmap” for change?
– Detailed ‘roadmap’ with top management support
• Commitment Planning
– Who’s support is needed, where do they stand,
and how to influence their behavior?
– Identification of key stakeholders
• Change-Management Structures
– What’s the appropriate arrangement of people
and power to drive the change?
– Allocation of key roles and responsibilities
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Change as a Transition State

Current Transition Desired

State State Future
State

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 Sustaining Momentum
• Provide Resources for Change
– Change cannot develop without tangible and intangible
assistance
• Build a Support System for Change Agents
– A professional network of like-minded personnel
• Develop New Competencies and Skills
– Change includes innovative perceptions of what may be
achieved
• Reinforce New Behaviors
– Prevent return to the ‘old ways’
• Stay the Course
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 Evaluating OD Interventions
• Implementation and evaluation feedback
• Measurement
• Institutionalizing interventions
• Characteristics that effect
institutionalization
• Processes and indicators of
institutionalization
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 Implementation and
Evaluation Feedback
• Process must not be taken for granted
• Evaluation aimed at guiding
implementation is implementation
feedback
• Assessment intended to discover
intervention outcomes is called
evaluation feedback
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 Measurement
• Selecting variables
– Should derive from the intent that underlies the
interventions; should incorporate the key features
as well as expected results
• Designing good measures
– Operational definition
– Reliability
– Validity

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Institutionalization Framework

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 Characteristics that
Affect Institutionalization
• Organization characteristics
– Congruence
– Stability of environment and technology
– Extent of unionization
• Intervention characteristics
– Goal specificity
– Programmability
– Level of change target
– Internal and external support
– Sponsor
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 Processes and Indicators of
Institutionalization

Processes of Indicators of
institutionalization institutionalization
• Socialization • Knowledge
• Commitment • Performance
• Reward allocation • Preference
• Diffusion • Normative consensus
• Sensing and calibration • Value consensus

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 Summary
• Organizational change requires the OD Practitioner or
change agent and members of the organization to
follow a process
– The problem/issue needs to be clearly identified and
diagnosed
– To do this, data needs to be collected and analyzed
– Feedback then needs to be given back into the organization
– Knowledge gained from the diagnosis and feedback enables
the design of the intervention
– The planned intervention is then implemented through a
series of activities
– Implementation and evaluation data are then gathered and
desired changes are institutionalized
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