Organisational Change Management Volume 1

Framework 12 Four Rs: Reframe, Restructure, Revitalise and Renewal

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This is a biological and holistic framework or analogy using the image of 12 chromosomes

Reframe

The first R addresses the corporate mind and involves shifting an organisation's perception of what it is and what it can achieve. The 3 "chromosomes" in reframing are achieving mobilisation, creating the vision and building a measurement system.

i. Mobilisation is the process of building organisation-wide motivation and commitment to achieve a common set of goals. It involves developing leaders; creating broad, interactive communication; encouraging the formation of natural work teams to focus on solving specific problems; and preparing individuals for the emotional cycle of change.

ii. Creating the vision is the equivalent of developing organisation focus or sense of purpose. It involves developing a strategic intent; prioritising expectations among stakeholders; and establishing values as a basis for the organisation culture.

iii. Building a measurement system, or scorecard, helps choose initiatives, prioritise them and track them. It involves developing top level measures and targets; building cause and effect relationships across the high level targets; constructing a bottom-up business case for change, and connecting bottom to top-down measures in order to be relevant to all levels of the organisation

Restructure

The second R deals with the corporate body and getting an organisation to achieve a competitive level of performance. The 3 chromosomes of relevance here are constructing an economic framework, aligning the physical infrastructure and redesigning the work architecture.

i. Through a resource allocation system, the economic models allocate money, materials and people where they are needed most. This framework involves managing the portfolio to build shareholder value; defining a high level value for each business; allocating resources by activity, based on cost and service level by using techniques like Activity-Based-Management (ABM) and Service-Level Analysis (SLA)

ii. Aligning the physical infrastructure with the organisation's network of facilities and other assets (plant, distribution centers, machines, trucks, etc.) to support the work and relationships involved in increasing value. It involves formatting an operations strategy, developing a network strategy, aligning individuals' facilities and articulating a sourcing strategy.

iii. Redesigning the work architecture is the process of reorganising work to achieve step-change improvements in efficiency, quality, service and improvements via continuous learning. It involves aligning individual processes for early wins, fostering complete alignment of individual processes and generating learning loops (flow of information and knowledge needed to act and react). Process mapping (a higher form of flowcharting) is critical to redesigning work processes

Revitalise

The third R is about igniting growth by linking the corporate body to the environment. This is what distinguishes transformation from mere downsizing. The 3 chromosomes here are achieving market focus, inventing new businesses and changing the rules through information technology.

i. Achieving market focus is the process of capturing information needed to relate and adapt to the external environment and involves developing a value proposition; segmenting the customer base by benefits; and guiding the design of a value-delivery system. A value proposition is a description of the benefits offered and price charged. Every work-related decision needs to be linked to the set of benefits an organisation intends to provide.

ii. Inventing new businesses is the process of examining the unique capabilities of an organisation that can be combined to create a whole new organisation with new purposes and goals. It involves fostering the cross-fertilisation of core competencies, building alliances and making acquisitions. A core competence is a related set of skills, capabilities and technologies that make an organisation uniquely adept in an area or field and has applications across businesses and industries. The challenge for the organisation is to look within and between businesses and industries.

iii. Technology provides the wiring and the programming needed to build connections across corporate boundaries, allowing them to progress together towards common goals. It also improves the speed and efficiency at which information and knowledge travels.

In this area, the CEO has 5 related tasks:

a) sanctioning technology for localised efficiency improvements

b) encouraging technology-based integration of internal business processes

c) promoting technology to enable reengineering

d) leading the development of technology-enhanced business networks

e) redefining the scope of the business through technology, eg invention of home shopping, birth of CCN and online services.

Renewal

Corporate spirit is the focus of the fourth R. It is about people and investing them with new skills and purposes so that an organisation can regenerate itself. The 3 chromosomes involved in renewal arecreating a reward structure, building individual learning and developing the organisation.

i. The reward system is what motivates people on a daily basis, and is psychologically rooted. In order to change people's behaviour, the rewards system must change. It involves aligning rewards with the goals of the organisation, extending the reward system beyond corporate boundaries to customers and suppliers, and allowing people to determine their own rewards, eg flexibility, the ability to win and follow-through on the ideas they generate, and payment for performance.

ii. By promotingindividual learning, an organisation recognises individuals' responsibility for their own development, while accepting the responsibility to create an environment of opportunity where individuals can thrive. It involves committing to the development of the individual; creating mentor-guiding, life-long projects for high calibre individuals; identifying the critical skills and designing an education strategy; and balancing the supply and demand for skills inside the corporation.

iii. Developing the organisation requires organising an organisation for learning so that it can adapt constantly to its changing environment, and fosters a sense of community among individuals. It involves designing the organisation to realise a few dominant business objectives, by using teams as the basic connecting node and the driver of organisational adaptation; creating global learning and embracing the corporation's soul and its shadow, ie developing as an economic and social institution.

organisational development change management

(sources: IMC, 1996; Punjas, 2013)


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