Techniques in Preparation of Information Technology

Soft Systems Techniques in the Preparation of Information Technology as a Systems Manager

Company Systems

Consulting process and model

Systems approach, client relationships

Company Culture

Client defenses, attachments to existing systems

Interaction with the company culture in order to facilitate change

System and Culture working together

Dependancy issues

Lewin

Company Systems

Consulting process and model

Systems approach, client relationships

Company Culture

Client defenses, attachments to existing systems

Interaction with the company culture in order to facilitate change

System and Culture working together

Dependency issues

Lewin’s model of Unfreeze, Change, and Refreeze

Research Question

Methodology and Procedures

Assumptions, Limitations, and Definitions

Data: Actual findings

Implications for Improvement of Practice

Conclusion

Additional Re-search

References

Appendix:

Charts, Graphs, Data survey instruments.

Abstract

As businesses grow, and technologies change, the global marketplace demands change.

The most difficult aspect of this mandated change is that the company must continue to produce its goods and services, continue to meet customer demands and fulfill their promises while in the midst of change. An age old idiom is “You never change horses in the middle of the stream.” However, when it comes to adding new IT systems to a business environment, the process necessarily involves just that, changing a major control system while the company is in full operation. The process demands not dropping details, disappointing customers, or losing key employees in the process.

This dissertation is the result of my consulting experience with IMS, a world wide supplier of metal stock, and engineered metal products. During my consultancy with IMS, the company began an effort to move from a 20-year-old production control system to a cutting edge, internet-based software application that will fully integrate the multi-national corporations operations across 3 continents, and over 50 production facilities.

Introduction

Nature of the Problem

Introduction

Nature of the Problem

This section described the nature of the change problem at a multinational corporation, International Metal Service (IMS) and my experience with the company. IMS is a multi-national, multi-product and multi-material corporate group established in 12 European countries and the United States through 18 subsidiaries operating in 51 locations. IMS carries out international technical distribution of its inventory for specializations on specific markets. It is represented in all major industrial centres, with 19 subsidiaries in 12 European countries and one in the United States. The Group sells special metallurgic products for the abrasion-resistant, corrosion-resistant and engineering steel markets. Their products are utilized in the construction of such things as road construction equipment, armor plating for armored transports, etc. The various stock keeping units (SKU’s) are sold and held and stored in distribution and processing centers across the globe. This activity demands the support of an effective logistics organisation and depends upon a professional sales force with a strong technical background. Eighteen IMS companies provide this service. They carry a permanent stock of approximately 40,000 different stocklines. These companies are product specialists in their product market and serve their industrial customers locally from 60 service-centers. (IMS-group.com)

The IMS group has been controlling their stock, production, inventory sales and accounting functions via location by location, information management systems. In an increasingly competitive global marketplace, this practice is costly. Services functions are being duplicated by each branch and facility. Overstocks and under production shortages are not able to be easily distributed through the corporate system. Accounting practices are made more complex by each location handling their own complete accounting structures. Also, many of the IMS customers are also competing in the global marketplace. The limitation of the company to distribute orders effectively throughout its branches is another limitation of the aging control system. In their book It’s Not the Big That Eat the Small… It’s the Fast That Eat the Slow, Jennings and Haughton argue that only the swiftest of corporations will thrive in the 21st century.(Jennings, 2001) They describe a program, based on best practices developed by contemporary business successes that describe a fast business structure which is based on streamlining “commerce, resource deployment, and people.” The authors insist that being faster doesn’t mean being out of breath, but being smarter b y managing customer relationships closely, and staying close to the market place factors which drive a particular industry.

Kay says “Old rules have changed, and new concept, new paradigms to use the favorite phrase, are required.” (Kay, 2000) In this new business model paradigm, in which the Internet can be used to facilitate intra-company communication, this old system has come to the end of its useful life cycle. The company has recognized that by shifting many of their resource management functions to in Internet application basis, the overall corporation can position itself to save money, and respond more quickly to the global marketplace.

The world-wide web already accounts for more Internet network traffic than any other application, including email and simple file transfer. It is also a collaborative technology in a weak sense of the word – it allows people to share information. It is socially unique in that unlike the telephone system it is a broadcast medium, and unlike television and radio the users have (a large element of) control over what is published and what they see. Most groupware systems are developed for particular platforms and are only usable within the particular organisations that use them. In contrast, the web offers a globally accessible, platform independent infrastructure. Not surprisingly, many people are looking towards the web as a potential platform for richer cooperative work.

The most important issue, when discussing the change over of a business information management system (IMS) to the internet is at what point does the business – IMS interface reach Critical mass

Grudin cites various reasons for the failure of Computer Supported Cooperative Network (CSCW) systems (Gruden, p. 87). One of the principal problems is obtaining a critical mass of users. Consider the cost-benefit trade-off for a user of a CSCW system. The costs of use are often constant irrespective of the number of other users. In contrast, the benefit rises with the number of other users. If you are the only user, then you don’t expect much benefit from a CSCW application So, if there is a small number of users the cost for each user is likely to exceed the benefit; only when there are a large number of other users does the benefit exceed the cost. The cross-over point is called the critical mass (see figure 1). Below the critical mass of users, the cost exceeds the benefit and so any sensible user will abandon the system, further reducing the number of users. Above the critical mass, benefit exceeds cost and so users will stay with it and others join. The challenge is getting to that critical mass position.

Figure 1: Critical Mass based on cost / benefit relationship

However, there is another function of the critical mass factor which is not based on number of users, or any other objective measurement. When considering the overall transition of a business IMS from one system to another, the organizational quality, and smoothness of the transition process is the largest single determinant of the Figure 1: Critical Mass based on cost / benefit relationship

If the cost of a system is fixed, and the number of users is predetermined to be sufficient to warrant the expense, the company can still fall short of the critical mass. The point at which the benefits of the new system exceed the cost will remain elusive if the transition is not planned, organized, pre-trained, and executed with a smooth and complete methodology.

Using Figure 2 as a graphic example of the change process, during the transition into new technology, the benefit of the new technology does not reach a point where it’s cost is perceived to be of less value than the benefit unless the organizational quality of the transition is thoroughly planned. The execution time for the transition can also affect the perceived cost – benefit relationship. The new system must begin to return applicable benefit to the organization within a planned amount of time, or else the transition will begin to be opposed by those involved

Figure 2: Critical Mass of Transition Process.

This is the situation in which IMS Group currently finds themselves. Managing this change process, from Pre-planning through the resolution of the last bug and glitch is the responsibility of an IT consultant, and the focus of this project.

The web was designed principally as a mechanism for information access – to some extent a form of collaboration in its own right. However, it is not at all obvious how this existing infrastructure is best used for richer forms of collaborative activity. The most obvious architectural issue is which parts of the web infrastructure are modified or extended. This infrastructure operates in three parts: server, client and protocol:

server-end modifications

Several systems including BSCW (Bentley, et. al. p 12) use server-end extensions: both CGI scripts and independently running servers. The former make use of the existing ease of extension within web servers.

Client helpers and applets

The incorporation of JAVA and JAVA-script into web applications has emphasised the value of client-end computing, especially for rapid user interface feedback. In common with server-end scripting, the need for users to download special code is avoided. In addition, some systems have made use of downloaded helper applications and modified clients, including clients modified to run Tcl/Tk as a client-side script language (van Welie, et. al. P. 8) additional protocols

Http is certainly not suited to real-time conversations Hence, those systems which aim to give ‘talk’ style interaction must use their own protocol over independent Internet channels (Walter, p. 24) It is more suitable for the user to consider interactive text messages, and then notification mechanisms.

HTTP as a transport layer

The systems which fall into one or other of the above categories are all clearly ‘web’ applications which effectively uses HTTP as a transport layer that allows very large (whole file) transactions.

This makes the web a perfect working platform from which to launch the type of intra- corporation, or inter-continental production management system.

Purpose of the Project

This section describes the purpose of my assignment with IMS and the details of their control systems change over. Many systems use the web as an interface. It is hard to produce platform- independent interfaces, and with the advancement of the world wide web, it is increasingly cost-ineffective to do so. The web combines the advantages of platform independence with a rapid distribution mechanism. Furthermore, interface development is iterative, and using the web means that changes are automatically propagated to all users. Because of these features of the web, and the platform independent applications which can operate cooperatively over global distances in real time, International Metal Service selected the STRATIX production and corporate management software from Inverna in Jan 2003.

In June 1996, Invera was requested to respond to a major systems proposal for International Metal Service (IMS), which headquarters in Paris, France. Inerva The systems which fall into one or other of the above categories are all clearly ‘web’ applications which effectively uses HTTP as a transport layer that allows very large (whole file) transactions.

This makes the web a perfect working platform from which to launch the type of intra- corporation, or inter-continental production management system.

Purpose of the Project

In June 1996, Invera was requested to respond to a major systems proposal for International Metal Service (IMS), which headquarters in Paris, France. Inerva’s involvement was based on previous implementation of STELPLAN (another metal production and processing management software package) in a large number of metal service centers in the U.S. Starting in April 1997 and concluding in July of 1998, IMS and Invera conducted a joint 15-month study of the specific requirements of the European service center industry. As a result of this review, Invera embarked on the development of a totally new, metal-specific, international, highly scalable system called STRATIX. This web based application incorporating technology to also form the foundation to meet, and exploit for the benefit of the corporate business demands the challenge and opportunity of the Internet.(invera.com, 2003).

Released in January 2003, STRATIX included state-of-the-art technology which addressed the global metal market. The STRATIX system included integrated applications for multi-lingual metal distribution and global metal manufacturing. STRATIX was designed and billed as a web application which would address the most sophisticated enterprise customers to the most price-conscious, single location companies. The STRATIX core functionality, in addition to distribution functionality, addresses multi-step production operations with integrated capacity planning & production scheduling, shipping, sales, accounting, and purchasing sides of the controlling parameters.

According to Inerva literature regarding the STRATIX IMS system, the rollout and implementation of the new control software was to include:

Implementation Schedule: The implementation of STRATIX is a highly organized and structured process. The process of implementation and the timetable is scalable, and dictated entirely by the client company

Executive Overview: The project commences with an Executive and technology overview to outline the scope of the product operations.

Core Team Training: This is followed by the selection and training of a Core Team. The Core Team is composed of individuals from the metal company with specific areas of responsibility such as sales, inventory, production, purchasing, accounting, etc.

Operational Fit Analysis: As part of the training process, the Core Team will examine the STRATIX operational fit to the metal company. There are two objectives of this process. The first is to specify the policies and procedures with STRATIX and the second is to specify any modifications that may be mandatory for operation of the product in the metal company.

Data Conversion: As a parallel process, the data conversion from the proprietary, in house computer system is planned and system gateways into Invera Product data tables is specified to run concurrently during the roll out phase.

Technology Installation: The deployment of technology (hardware, software and network) must be planned to allow for Core Team Training, user training, simulation and finally the product rollout.

Simulation & Conversion: After a comprehensive business and technology simulation has been successfully conducted, the conversion weekend consists of verifying and balancing all information in the new databases. This is followed by full computerized operations the following weekday with the new policies, procedures and computer systems (invera.com).

However, throughout the actual implementation of this process, the STRATIX system is not performing to the expectations of the local IMS plant. Nor have the proposed features and benefits listed above been the experience of the IMS staff as they have attempted to fully implement the STRATIX system. After months of progressive, phased incremental roll-outs, and working through successive glitches, the plant staff responsible for managing the performance and production facilities do not have much confidence in the STRATIX system. The STRATIX is pc based, with the ability to seamlessly interface with the internet, and the global corporate structure. This is the end goal. However, at the time of this writing, the company was not able to rely on the system to create accurate control data in their own plant.

A short summary of the situation is as follows. The manager of information systems and the financial director need the workers to start using the system immediately in order for their positions to have the necessary data for oversight and control. However the people in the plant, a staff of approximately 85 workers in the production floor and shipping department don’t want to commit their success to a system which is not been successfully delivering accurate data. The staff who are in charge of transport planning are also unwilling to trust their success to a seemingly recalcitrant computer system.

Grunge suggests that company re-engineering such as this “is conducted as a top down and goal directed fashion.” fails to meet the directives of a truly empowered organization. He argues that a change process, which changes the substance and culture of an organization cannot find its sole energy in the organization itself. He argues “how can an organizational change programme, which is based on hierarchical authority, possibly lead to an organization that is empowered in any substantive way. (Gunge, 2000: 121)

As a consultant, my task is two fold. Primarily, my task is to consult on the successful integrated implementation of the STRATIX system. Secondly, this project considers the wider concept of the consultancy process.

Therefore, this dissertation will answer the dual questions of:

What would I have done if I had been introduced into this situation earlier as a systems manager. As a consultant, how would I approach the process of change, and manage the change in order to execute a successful transitional process of moving the production and control of the plant onto the STRATIX system?

Now that IMS is experiencing the difficulties, as a systems manager, and IT consultant, what do I recommend can be done to overcome these problems.

There are approximately 85 users of stratix within IMS, and the system isn’t operating cleanly yet. However, with the passage of time, the potential for error is growing. Also rising is the inability to track down errors because key people are developing their own systems for managing their tasks. The company goal is for everyone to start using this new system, because the company has determined that STRATIX will be the future of the company.

This presents the central conflict of the situation. The Financial Director and Manager of Information Systems are committed to using the system, and in order for their jobs to operate successfully, they need the STRATIX system to be fully operational, fully utilized, and accurate. For the Transport department and Production department supervisory staff, the key imperative for their jobs to operate successfully is that the proper materials must be manufactured, milled, and shipped to the right customers at the right time, without lag or error. From their perspective, if the STRATIX system will not deliver accurate information for daily management, they will create their own system to do the job.

Each of the key players in this transition to the STRATIX system is duly focussed on his or her own area. Unfortunately, they are collectively losing sight of the advantages of the new system. The fully implemented STRATIX system will be a worldwide system, whereas currently each country, and plant uses their own separate system. The existing system was rewritten in diabolics, which is a programming language that hasn’t been used since the 80s. In sort, STRATIX moves the company’s information management systems up the 21st century, and makes IMS a single business entity within Europe.

The primary concern at the moment of the stratix system is the non-proper usage of the transport planning screens. But in order to understand the inter-related nature of these functions, it is necessary to:

review the overall STRATIX IMS process compare this process to how the individual company staff are using, or bypassing the system now.

For example, the sales department is responsible for order processing. This department should be using the order – quote screen. Telephone sales staff currently write orders into a book, then put the order onto the system at a later time. There is actually a function on the stratix system that lets the salesperson put a quote on the screen and then turn it into an order by the a click of a button. The sales staff are not using this feature, which is the beginning of the entire information management system.

STRATIX also can be used by sales to generate invoices once the order is input, and at the other end of the process, flagged as shipped. Without the control on the front end (sales dept), any attempt at making sense out of the back end (shipping dept) is an exercise in futility.

The sales module includes a customer account database. If there is a new customer then the sales people put info into a prospective account which then goes to the accounts department. The accounts department need to run checks on the new accounts before turning them into regular client accounts. There needs to be a determination of credit limit, and other data which is done after doing all the checks. Without this control on the front end, the accounts staff do not have complete management of the international client accounts.

This is one small example of the additional work which is created by half using the STRATIX system. However, the most glaring problem is in the transportation and shipping dept. At the time of my assignment with IMS, this dept. is using the original method, which involves a paper trail of the job work order. A printed spreadsheet is used as a control document, which has all the details of the customer on it, the transport route, the 9 zones of transportation etc… (basically all the vital information to get it shipped out). So once the steel has been cut and processed etc.., the workers in the factory write down on a piece of paper (or any random pieces of steel left over) the pertinent information of the shipped orders. At the end of the day, the notes, are compared with the control document, and then information is entered back into the system.

The habits of the workers arise from the old system. A lot of the old system was paper based therefore the introduction of stratix has caused a massive culture shock.

The final last version of stratix should be in place by a couple of months from the time of this project. Where there was initially some training involved for the new system, additional frustration has been growing due to the fact that the STRATIX system is not complete and it constantly changing.

With the introduction of the Stratix system, they have started to put in the info from the work order forms into stratix which then generates a transport number. Then a packing list is also produced through stratix. There is usually one packing list per customer per order which may have a few items on his list. Because this list is only a partial list of all of the customer orders, (due to selective use of the system) many steels pieces which are produced early and stand ready for delivery, are put on hold because of a later due date (the date at which it needs to get to its customer). The individual items’ production and shipping schedules, some of which are being managed by the STRATIX system, and some of which are being managed via the old system result in materials being produced a month before they need to be shipped. This situation creates additional storage troubles in the shipping dept, an the production floor. Accurate and complete use of the Stratix IMS would solve this problem.

The issues with the STRATIX system are magnifying typical communication issues between departments. There now exists a communication breakdown between the sales department and the actual shipping department. There also seems to be a problem with the loading documents. People are questioning whether the loading paperwork shows enough relevant information that is linked to stratix. The loading documents are produced separately to the stratix system. Looking forward, the Distribution functions which are currently externally contracted, are up for consideration for bringing in house. The company wants to buy its own transport and everything is going to become in house, However, the Manager of Information Systems cannot recommend a move in this direction before the stratix problem is solved.

This is a small sample of the problems which are multiplying each production day at IMS. In addition to this production and management difficulty, the intangible factor is the staff’s willingness, or opposition to the use of the STRATIX system. Each member of the company has their own personal psychological contract, his or her desire for turning out accurate orders, and effective production. The continued mis-implementation of this system will threaten the staff’s commitment to perform their jobs. Most workers have an inner desire to produce and complete their assigned duties. They are willing to overcome the jobs daily pressures, hassles, and difficulties in order to complete something they feel is worth while. However, when the company is placed in a position of appearing to make their jobs more difficult, the company threatens to upset the balance of the workers willingness to produce accurate work. This situation is just as severe of a potential problem as any other the company faces as they wrestle the STRATIX system into compliance.

Background and Significance of the Problem

This section looks into the background of the larger picture of change, and change management in a corporation, and introduces the role of the consultant in the change process. Returning to the horse and stream metaphor, there are 2 steps that need to be considered. First, before entering the river, the rider needed to know that his horse was strong enough to swim to the other side. The rider also needed to take account of his own riding talents. Could he direct the animal to continue to swim when the currents became strong, and the beast could no longer feel the certainty of the river bead under his feet.

Secondly, once the rider and horse committed their fortunes to the water, there was no turning back. The current may be stronger than anticipated. The water may be colder, but once the decision was made to leave the shore, the decision was made that the horse and rider would arrive together on the other side.

While horses and riders are an image that has long passed out of our daily experience, this vivid picture helps understand the process of change which IMS faces, and illustrates the position into which the consultant steps in any change management assignment. The project if shifting to the new STRATIX system is daunting, like crossing a swift swollen river on horseback. The company may, or may not have adequately prepared for the change by taking stock in their existing systems, personnel, and planning for the inevitable unexpected problems which they would encounter along the way. The process also involves a shift in the company culture and how it thinks about its control systems.

However, now the company is “in the middle of the river” and struggling to complete the process.

The significance of this problem is that in every industry, there is mandated change by the advances in technology, products, and changing market demands. This change process takes into consideration both the company processes, and how the company processes interact with the people. Referred to as ‘organizational development’ the change process is a “systematic process for applying behavioral science principles and practices to increase individual and organizational effectiveness… OD is an organizational improvement strategy… involving how people and organizations function. (French and Bell 2000:1) ” At no time is a company free to set the planning, production, and forecasting functions on autopilot, and continue to do things into the future as they did things in the past. To do so is an attempt to maintain the bureaucratic structure of the late 20th century which moves too slowly to be competitive in the information saturated 21st century. The bureaucratic organization becomes an unsuitable place within which to work. It did not survive the postmodern condition because it couldn’t learn from its errors.

Bureaucracy has been referred to a lifeless crutch that is no longer useful for the day-to-day process of business management.

As business use of information technology (IT) expands, the traditional constraints of time and geography, which were formerly rigorous, are now relaxing or changing. Rapid advances in telecommunication and other information technologies are fostering globalization of economies. As a result, the global marketplace is becoming the new frontier of business. Faced with the rapid pace of change in today’s business markets, organizations are compelled to adapt with unprecedented dexterity and flexibility in order to remain competitive and to face the challenges ahead.

This use of technology brings a company to the entry point of change. At the beginning of a change process, organizations need to reassess the types of knowledge and skills needed by their workforce to effectively compete in the marketplace of the future (Fellers, 1993). In addition, they need to learn from both their successes and failures. Much of an organizations identity has been built over time, and change does not mean changing that identity. Change, or organizational learning has been progressing through the history of the organization, and is a fundamental requirement for sustained existence (Kim, 1993). Since radical change is extremely hard to accomplish, organizations should realize that the process of radical change will be trying, and the organization should be willing to accept failure and learn from it (Caron et al., 1994). Although it may be easier to learn from failure, organizations should have a mechanism to retain what was done correctly as well as what was not (Levitt and March, 1988). Such a mechanism is typically referred to as organizational memory. Organizational memory can be defined as organizational knowledge with persistence (Ackerman, 1994).

Hammer and Champy (1993) have said that empowerment of front-line workers is critical if organizations are to understand core business processes, and move through the process of change. This is another reason the bureaucratic, from the top down power structure of the last century is not longer a feasible business model. Frontline workers are closest to those processes and they are probably the only ones who really understand how they work. To reap the full benefit of empowerment, many organizations have chosen to push decision making down to workers who deal daily with core processes. Thus, it appears empowerment is a very important factor in sustained business success. To share and learn from empowerment over time, organizational memory must retain and allow access to the lessons learned.

A powerful mechanism available to most organizations for organizational memory is information technology (IT). Information technology is generally recognized by most managers as a support mechanism for organizational activities (Boynton et al., 1994). However, the ability of IT to facilitate organizational learning and memory has not been as well documented. IT can support organizational memory by making recorded knowledge retrievable or by making individuals with knowledge accessible (Ackerman, 1994). Notwithstanding, an increasingly interdependent and unpredictable business environment has made it impossible for top management to manage the entire repertoire of organizational knowledge. Therefore, workers should be empowered to not only carry out their respective jobs, but to facilitate the accessibility of knowledge. Further, integrative thinking and action should permeate the organization at all levels (Senge, 1990).

This is the very function of an IT control system. When integrated with the web, workers at every level can have access to control information, and make control decisions within the parameters programmed into the IT system. This activity is most often within the ability of the company and workers to perform, however, the culture of the company may not be ready to accept the distribution of power, and responsibilities to workers at various level which is necessary to accomplish this shift in company policy. Companies are scrambling to adjust their culture to accept this shift in business theory. Rather than organization and structure as the source of a company’s strength, information and information management has become the new competitive high ground. “The No. 1 issue facing chief information officers today as they seek to migrate their organizations to nontoxic, enterprise wide deployment of client/server technologies is mastering the ‘7 C’s of Knowledge Management'(Thorton, p. 16):

codification: identify what is known, and build a database of the knowledge collection: bring together what is known creation: create, build, buy, or learn to fill in the gaps.

A conservation: use the knowledge you have, and leverage to your advantage.

A communication: engage your staff with the information you have, and begin to use it.

A commercialization: capitalize on what you do know compensation: get paid for your knowledge by reselling it to others.

The change process, nurturing a business from bureaucratic to proactive functions, from protectionistic to globally competitive is the process which consultants are asked to manage.

This same process is repeated in companies which have to change over to new methods. The dynamics within the STRATIX IMS situation are the same as those encountered by consultants across the industry.

The consultant is in a powerful, and highly delicate position. He comes to the table with a fresh view of the problems because he can look at the situation without the territorial prejudices of those in the business he serves. In the IMS setting, the Information manager, and financial director need accurate information in order to guide the company. The floor production people, and the sales force have to have a quick, reliable system to transact their orders. The Invera staff, those who have sold the STRATIX system to IMS, are in the position of wanting to successfully sell their product to IMS. They also want to have a positive experience with the metal producing giant so that they can build future business on this success. Inerva has invested over 5 years of research, development, and business political capitol in creating the STRATIX system to serve IMS.

Each party feels a level of territorial protectionism over his or her interests, because at the moment, the other interests are ‘threatening’ the success of their own project biases. Each party wants to arrive at the successful completion of the change process, but in light of the difficulties they face, there are mounting questions as to whether or not this goal can be achieved. Into this internally competitive, and territorial setting the consultant must:

apply his expertise gain the trust of all parties involved identify cooperative goals,

Identify, and sell involvement a step-by-step process to each of the involved parties to reach toward those goals,

Manage the change process

Transfer his knowledge to the parties

Refreeze” the new operating culture, and systems in the new organizational structure

Exit in such a way as to continue the change process in the company

Initially it would seem that consulting is a totally different activity to the other professions in management, but this is not true. Basically consulting consists of a process of analysing, deliberating, judging, counselling and implementing of solutions to a situation. So whether it is a case of knowledge management, marketing, organization development or systems management, the consulting process becomes the core activity. Consultants hold a position of many levels and we present through action or advertisement our education, experience or belief. In essence, we share from our experience the knowledge we hold with others. Therefore it is safe to make the connection that the core of our activity, whether it be in business management/development or personal development, is consultation.

In some cases, the consultancy process is engrossed by a different paradigm. The current business era has been called “post-modern” by some. This new era is identified by a rejection of absolute truths and grand narratives explaining the progressive evolution of society. At the same time it has brought to the surface a multitude of different perspectives on society and an appreciation of different cultures. The post modern idea has highlighted global competitiveness in the marketplace on the one hand and utilising technology, and the power of information to remain localized in approach to personal business relationships on the other. Post-modern thinking has become somewhat lost in it’s the celebration of differences and the searching for commonality. The postmodern society is leading to the development of postmodern organisational structures which are being used as contrasts to bureaucratic forms of organisation, which were unable to cope with the demands of the postmodern condition.

These organisations are loosely coupled, fluid, organic, and less rigid instead of the static and mechanistic bureaucratic structures that have traditionally preoccupied organisations. Also in the postmodern organization, there is a reduction in the number of people working in operational roles, while employment in professional, knowledge-based roles has risen when compared to older organizations of the past.

On a purely theorist level, the postmodern organization does not exist. For example, from a postmodern perspective, a contemporary form of organization would put little emphasis on planning and control and would create an essentially chaotic and reactive environment. But this cannot be the case, since most organizations today spend a large amount of their time and money on rationally calculating things like which market to move into, which firm to swallow up, etc. Therefore many scholars would argue that any decline in rationality (the skeleton of bureaucracy) is strictly in the minds, not the practice of post-modernists.

It would be valid to conclude that at this present time we can witness a mixture of modern and postmodern forms in most organizations. This way of being can develop into a more open, and pliable organization.

But then of course this so called openness can cause many uncertainties, especially internal, which is where the organisational consultant is drafted in to help managers deal with and manage these uncertainties.

While this post-modern perspective may exist in some industries the ‘tendency toward diversity’ in the setting with IMS is the very obstacle to successfully implementing the STRATIX system. In a manufacturing setting, one in which a global organization’s goal is to cut costs, tighten the control over manufacturing facilities and production costs, the consultancy role is more of a traditional project management position. My goal with IMS was to identify working parameters within which the STRATIX system could be successfully implemented into the management and control function of the company.

While many management books have sought to break down the consulting process into manageable bites, the consulting process in this setting can be discussed in 8 steps. These steps are summarized by Tranfield and Smith’s (1991) admonition to “get in, do the work, and get out.”

Connect with the Issue or Problem. In the case of IMS, I spent a large amount of time with each of the key players, and in the different departments asking questions, and observing the methodology of the current processes. This assignment was hands on from the beginning since the STRATIX system was already installed in the company. Through this process, I also spent time earning the trust of those involved. As an ‘outsider’ the consultant is respected only in name until he can connect with the issues, and demonstrate that his input will be a positive influence on the process and management of change

Open the Doors: There are 3 identifiable realms of the change management function. The first is process defined. The assignment’s goal was already identified: that the STRATIX system needed to be utilized by the company staff. The second realm of this consultancy assignment was less defined, and resembled a participative management function. My responsibilities included continuing to generate trust, and engage the participants involvement in the first realm. The third, and most undefined realm is that of identifying the underlying psychological contracts and issues for each of the participants. While not on the surface of this control system change, As a consultant, my effectiveness would be diminished if I did not address these issues. After these issues were identified, I could discuss the contract with the client, and only then move to begin the process of change.

It is important to discuss the contract at this point. Without an contract, the actual consulting should not begin. To do so is to enter into work without all the key personnel involved.

Working without a contract is working without boundaries, and this sets a dangerous precedent, and created a stage in which misunderstanding is likely to occur.

Find a new understanding to interpret or interact with the problem. This stage of the process involved digging into the actual workings of the STRATIX system, and the IMS manufacturing systems. It was important that as a consultant, I get to understand the core issues, the forces which were inhibiting change, and those forces pushing for change.

Specify and identify needed actions. Until this point, the consultant has taken no action. The process of building trust and coming to understand the issues of the company are the key to determining actions which can be taken.

Initiate and undertake needed actions. Referring back to the horse and rider metaphor, at this point, with every key player involved, committed to the process of change, and prepared for unexpected events, the rider, or consultant, urges his mount, the company, into the river of change with the goal of reaching the other side. The work that has been undertaken prior to this is the foundation for success. At this point, as a consultant, I began to discover if my work had been well crafted, and if the relationships I had built with the others on the team would take the strain of the change process.

Locate gaps and opportunities via intermittent evaluations, and ongoing interaction with the key staff. During the process of change, the progress will be impeded by unexpected obstacles, and pushed along by unforseen successes. Remaining flexible to the change process, retracing steps in order to remediate those in the system as to progress is essential to the change process.

In the educational world, this process is termed pedagogy, which is defined as the science, or organizational structure of education. Without the consultant taking one the willing role of a teacher, building into the system the structure of learning as the team adapts to the process, the key players will often retreat to the position of protecting their own interests, rather than engaging the change process. The following table outlines some of the benefits of a pedagogical process.

Process of Mastery of New Technology

Without Pedagogy

With Pedagogy

1) Learners have no option but to figure for themselves how to use a collaborative tool to its best advantage and assume that their colleagues are able to do the same

Support is given to enable learners to understand how collaborative technology can improve speed, convenience, access to develop working relationships

2) Learners have no option other than to expect that collaborative tools will show them how to make work easier or more convenient

The pedagogy takes time to explore what doesn

Without Pedagogy

With Pedagogy

1) Learners have no option but to figure for themselves how to use a collaborative tool to its best advantage and assume that their colleagues are able to do the same

Support is given to enable learners to understand how collaborative technology can improve speed, convenience, access to develop working relationships

2) Learners have no option other than to expect that collaborative tools will show them how to make work easier or more convenient

The pedagogy takes time to explore what doesn’t work well and to explore other alternatives the technology offers

3) Learners have no option but to assume that team members share their preferences for ways and means of communicating and sharing information

The pedagogy makes explicit the preferences of different team members for communicating and sharing information

4) Learners have no option other than to “hack” their way through a new tool, picking up tips and tricks as they stumble across them The pedagogy encourages the development of team protocols in order to reduce information glut, leverage team knowledge and improve team practices

Adapted from C. Willet (2002) “eRoom for Power Users, http://www.akgroup.com / solutions/eRoom_powerusers.pdf

This is the stage of the process during which as a consultant, I spend my political capitol to encourage the team members to stay committed to the process of change. This is the stage in the process during which my organizational efforts must bring the organization to the place of critical mass, where the benefit exceeds the cost. (Buchanan, and Boddy, 1992)

Transfer Knowledge to the Organization: The process of change should be executed on a specific timetable which each participant has signed onto. Well before the completion of this learning cycle, as consultant, I am beginning to lessen my influence on the organization. As a consultant, I have been agent of change, a catalyst in the chemical reaction of change. Now that the reaction is almost finished, the company need to know that they can manage the new systems on their own. By slowly withdrawing my input, I an ensuring that the other key participants are able, and know that they are able to run the new system. This early planning clears the path to the final step.

Successfully transition out of the organizations activities. The final transition should be a summary survey of the entire process. The company culture will likely have changed due to the consultants input. Reviewing the starting point, the process, and the outcome is an important part of the validating the psychological contracts, and finalizing any remaining knowledge transfer.

Literature Review

In this section, I will review literature in the field of consultancy, change management, and corporate culture in order to gain a full understanding of the change process of IMS, the complex issues involved in changing control systems, and my role as a consultant, and an agent of change within the company.

Company Systems: Approaching Change number of conceptual frameworks have entered the management literature regarding how individuals make sense of their organization environments. Terms such as climate and culture have been used to help organizations identify that they have a unique culture that exists in addition to the process of transacting the business of producing goods and services. (Reichers and Schneider, 1990) Organization identity (Albert and Whetten, 1985) is another current catch phrase. These frameworks provide organization members with tools to recognize the attributes of the organization that become internalized and shape organization cognitive beliefs. Beginning with Pettigrew (1979) the culture perspective has focused on shared meanings, assumptions and underlying values (Schein, 1985). A variety of organization factors such as signs (Barley, 1983) and rites/ceremonies (Trice and Beyer, 1984) have been topics of culture researchers.

Organization identity, which refers to a core set of attributes that comprise the organization, is considered to be the essence of an organization (Albert and Whetten, 1985). Organization identity is a set of attributes that members believe distinguish it from other organizations because it represents the central, distinctive and enduring character of the organization (Dutton and Penner, 1993). Because organization identity is considered a cognitive structure (Ashforth and Mael, forthcoming) it provides a sense of what the organization stands for and becomes an organization member’s knowledge for what that person believes are the core attributes of the organization. Organization identity is constructed through the actions of leaders and members, and can often rise from the responses of the staff related to critical incidents in the history of the company. Organization members learn to cope with the demands of the internal and external environments through these actions. It is this body of knowledge that differentiates the organization from other organizations in terms of mission, competencies and practices.

The need for an organization to undergo significant strategic change can be brought about for a number of reasons. Poor performance (D’ Aveni, 1989) can bring an organization to the crisis point of demanded change. Environmental turbulence and uncertainty (Koberg, 1987) in the marketplace, both manageable, or from acts beyond the control of any human resources. For example once the terrorist attacks of 9-11 occurred, the globally affected organizations could not retrace the incident, or respond to minimize the monumental affects which swept throughout the global business community. Businesses have had to adjust to the reality, and make new plans to return to fully profitable operations. Resource shifts (Castrogiovanni, 1991) can change the manner in which a company can do business. Resources shifts can come from governmental actions, competitive entry into the marketplace, or natural disaster. The desire for risk reduction (Bromiley, 1991) can cause a business to search out a path of change, as can managerial preference (Hambrick and Mason, 1984).

Regardless of the impetus for such a change, the need to align all aspects of the organization with the new strategy is of vital importance to overall effective performance, as well as survival. Perceptions of environmental uncertainty and organizational control influence these strategic choices. Cultural differences may affect the interpretation of strategic issues and the response to needed strategic changes (Schneider and De Meyer, 1991).

Although most strategists favor an adaptive theory of organizational behavior, a thorough adaptation of all elements is frequently difficult to achieve in short time. Ackerman (1982) argues that defining a solution and implementing it is not enough, but often requires a transition management to gently reduce problems, make clear why change is needed and increase the prospects of successful change. In this respect, the consultant assignment of introducing and managing change meets the somewhat unmovable entity of corporate culture.

Organizational Culture

Corporate culture is the shared values and meanings that members hold in common and that are practiced by an organization solutions/eRoom_powerusers.pdf

Literature Review

Organizational Culture

Corporate culture is the shared values and meanings that members hold in common and that are practiced by an organization’s leaders. Organizational and corporate cultures are formal and informal. They can be studied by observation, by listening and interacting with people in the culture, and by reading what the company says about its own culture, by understanding career path progressions, and by observing stories about the company. As R. Solomon stated, “Corporate culture is related to ethics through the values and leadership styles that the leaders practice; the company model, the rituals and symbols that organizations value, and the way organizational executives and members communicate among themselves and with stakeholders. As a culture, the corporation defines not only jobs and roles; it also sets goals and establishes what counts as success” (Solomon, 1997, p.138). Corporate values are used to define corporate culture and drive operations found in “strong” corporate cultures. Boeing, Johnson & Johnson, and the Borg-Warner firm all exemplify “strong” cultures. They all have a shared philosophy, they value the importance of people, they all have heroes that symbolize the success of the company, and they celebrate rituals, which provide opportunities for caring and sharing, for developing a spirit of “one-ness” and “we-ness”(Weiss, 1994). Organizations that stress competition, profit, and economic or self-interests over stakeholder obligations and/or that have no morally active direction often have cultures that are in trouble.

The founders of an organization set the tone for the beginning stages of what a company’s culture will be. The practices of the founders and first employees begin the rituals, the corporate stories, and norms. Ethics are a major factor in the development of a positive or negative culture. If companies allow unethical acts to occur, this behavior will perpetuate itself through the life of the organization, as will the decision to maintain high levels of ethics and values.

Ethics are an important role which influence how everyday activities are executed. The struggle of many organizations today is implementing ethics into their daily life. The method used to get on the right tract towards ethics is the decision that one may make. There are many different questions asked about guidelines of how to create and maintain a strong corporate culture. One may be able to set up a goal, or future vision to help strengthen his or her environment. This idea can help create an environment, which focus on enhancing the founders mission and objectives (Weiss, 1994).

The impact of an appropriate organizational culture on the well-being of the business organization has been explicitly recognized by many organizational researchers (Dennison, 1984; Camerer and Vespalian, 1988; and Wilkins and Ouchi, 1983). Tunstall (1986) proposes that a company’s culture is the amalgam of shared values, behavior patterns, mores, symbols, attitudes, and normative ways of conducting business. Further, culture may influence what organizational strategies are selected and whether they are successful (Cartwright and Cooper, 1993; Marcoulides and Heck, 1993; Wilkins and Dyer, 1988). Existing cultural orientations may be quite supportive of the mission and success of a firm at a particular point, but not at all appropriate when significant strategic change becomes necessary.

Culture has traditionally been recognized as a consideration in the strategy implementation process (Bourgeois and Brodwin, 1984; Nutt, 1986; Galbraith and Kazanjian, 1986). Culture is assumed to explain the success of some organizations (Peters and Waterman, 1982), to represent an essential element in effectiveness of organizations if it fits the strategy (Schwartz and Davis, 1981), to act as a determinant of strategy (Ackerman, 1982), or as an influence on the implementation of strategic decisions (Schwartz and Davis, 1981). Such claims contribute to the recognition that culture plays a large role in the overall implementation of strategy. As such, culture must also play a critical role when dramatic, significant strategic change is mandated.

Few concepts in organizational theory have as many different and competing definitions as does organizational culture. Even though some disagreement and ambiguity have been noted in the numerous attempts to define culture in the organization, certain elements repeatedly emerge in nearly all definitions (Deal and Kennedy, 1982). Schall gives a relatively accurate all-encompassing definition: “Culture is a relatively enduring, interdependent, symbolic system of values, beliefs, and assumptions evolving from and imperfectly shared by interacting organizational members that allows them to explain, coordinate, and evaluate behavior and to ascribe common meanings to stimuli encountered in the organizational context” (1983: 11).

Further, it is a direct manifestation of human interaction and it can be thought of as a force which orients and directs the behavior of individual members (Saffold, 1988; Wilkins and Ouchi, 1983). It defines behavior and the way in which a firm conducts its business (Peters and Waterman, 1982), and it expresses values and beliefs that organizational members share (Siehl and Martin, 1981). In so doing, it explains the group’s core feelings about business which dictate organizational behavior.

When we think of culture in this way, the distinction between the organization’s culture and such important organizational traits as overall strategy and structure becomes blurred. This may be due, in part, to the complexity of culture and the difficulty associated with measuring it. If it is construed as a multidimensional, multilevel concept (Nahavandi and Malekzadeh, 1988), it can be more handily evaluated as to its impact on other specific organizational variables. These aspects of culture are vital to the extent that they can be identified and evaluated for their impact on implementation needs during a major strategic change.

The organizational level of culture is most easily recognized as being related to strategy. implementation and organizational effectiveness. The ease or difficulty of changing a culture is dependent on how ” deep-seated” the integral parts of the existing organizational culture are. Culture is manifested in behavioral norms, hidden assumptions, and human nature (Peters and Waterman, 1982). Each of these variables occurs at a different “level of depth” in the overall culture (Kilmann et al., 1986). Deep-seated cultural values are very difficult to change and are influenced strongly by themes emanating from both the industrial and societal levels. Most cultural aspects, however, are subject to some degree of change.

The culture of a company is very influential in daily transactions. It establishes what can and cannot be done. Some practices may be written down or may not be written down and are learned through observation. Planning, leading, organizing, and controlling are functions that are affect by the strength of weakness of a culture. Satisfaction of a job well done, benefits, and other factors apply to the effectiveness of a culture. If leadership focuses on not only the well being of the organization but its members as well, this will encourage full participation from its members.

Employee empowerment allows the lower-level employees the advantage of making decisions that will influence the future of the company. Gabriela Valverde, Human Resource Manager, San Diego Zoo, said she works for the San Diego Zoo because of the satisfaction that she receives for the work that she does. She also says that there is a feeling of community within the institution, they all share a common goal. They all have a deep — “rooted loyalty and sense of pride for the organization. (Raphael, 2001)

Corporate cultures affect the internal and external activities of a company on a daily bases. The culture creates the environment that sets the mode for the total practices of an organization. A culture may be strong or it may be weak; strong cultures share a common goal and have a positive environment. They hold true the not only the mission and objectives of the founding members of the organization, but they are aware of their employee and the roles they play in its existence. Employee participation and involvement creates a surrounding that perpetuates positive outcomes. Weak cultures may allow unethical practices in the organization to continue either by its leadership or its subordinates. Fierce competition, favoritism, and weak communication create weak environments, thus allowing the breakdown of a culture. In each of these situations, the culture affects the total performance of the organizations and its members.

Systems Approach to Organizational Change

Without a thorough understanding of the psycho-dynamic systems involved with the process of change, and the involvement of corporate culture with any significant shift, the simplistic approach of an organization as they hire a consultant can be an approach that says: “Here is my problem, take it, fix it, and give it back to me repaired, and tell me how much it will cost” (Schein, 1987: 23). Infortunately, the busy CEO who may holds this simplistic idea of the consultancy may also be a part the culture or system which much change. Key leaders in the organization are often instrumental in formulating the organizational identity. The CEO may not know it exists, because it is an extension of his own sets of beliefs, values, and personal purpose. The change process may, and most likely will involve new practices and application that will confront the existing organizational identity, and thus confront those key organization members who have formed that identity. Without an understanding of the nature of the organization, the change process can be perceived as a personal challenge to those who have built the organization’s identity.

The systems approach to organizational change is the starting point for any proposed company change, or innovation. The systems approach requires an understanding of the existing company organizational, and influence systems. The process of change involves managing and changing the peoples behavior, as well as providing new tools, machinery, assembly lines or computer hardware. In order to manage and facilitate change in the people, their existing influence systems should be first mapped, and understood. The communications and influence system in an organization include seven interrelated circles of influence.

Figure 3: structure of, and influence on Organizational Culture.

Figure 3 graphically identifies the 7 ideological systems which make up the culture of an organization. At the center are the organizations core vision and mission statements, their values, and ideology. The other ideological systems within the organization are:

Leadership

Capability

Technology

Communication

Strategy

Structure

These seven communication and influence systems make up the overall culture of the organization. Pulling on the organizations culture from the outside are the influences and desires of those with whom the company interacts. Competitors work to affect the organization. Customers make demands on the organization, as do suppliers, and company stockholders and the community at large.

The consultant

Figure 3: structure of, and influence on Organizational Culture.

Leadership

Capability

Technology

Communication

Strategy

Structure

The consultant’s position requires that he outline and understand these communication systems before initiating any attempts to change the organization. The consultant must also often educate the key players in the company as to these 7 communication and influence systems as (s)he enters into the process of change with the organization. Often the key players themselves must change personal paradigms if the overall organization is to accept the changes.

The Process Model of Organizational Change simplified example of the process of change could be illustrated by asking the question:

I am walking across the street. But the process is how I am walking, running, walking, dodging cars, etc. (Schein 1987:34) Process is helping someone understand their environment as well as actions and how they interact, and affect events that happen in environment.

Lewin’s model of Unfreeze, Change, and Refreeze

In Lewin’s first encapsulation change style for organizations, he drew from his understanding of physical sciences to describe the social science reality of bringing change to an organization. Lewin described the existing state of an organization as that of ice, frozen and solid. Changing the system is possible, but change is not possible just by putting a square block of ice and forcing it into a round hole. The change cycle began by unfreezing the organization. Then change forces could be applied to the organization with minimal expense of time, energy and resources. He was also the first to identify that after the change, the organization must then be refrozen in the new shape to prevent the change from being lost.

Lewin also used the force field diagram in order to gauge the amount of change force needed to initiate the unfreezing process, change, and refreezing process. His use of this Figure 4: Lewin

Figure 4: Lewin’s Force Field Analysis of the Unfreeze, Change, Refreeze Process diagram is helpful to understand the process. Of the force field analysis is a combination of principles of mathematics and psycho dynamics.(Lewin, 1935) Figure 4 identifies the stages of this change process. During the unfreeze phase, the factors opposed to and supporting change are roughly equal. In order to introduce change to this environment, or organization, The factors opposing the change must be minimized, and the factors supporting change must grow in size, strength, or number to create the change. During the refreeze phase, the factors supporting the new state of organizational rest establish an equilibrium with new factors which resist further change. In the refreeze phase, these factors are most often new to the organization, and will help the organization define itself, for the foreseeable future.

The following diagram is useful in understanding the social, and internal process of change. This diagram applies to the individual, and to the organization, and identifies that it is most often only the uncomfortable nature of an existing state that motivates an organization to begin the process of change. When an organization is in a state of high energy, be that an existing method of operation which is working for them, or a highly charged dysfunctional state, the process of change will be a difficult one to begin. The organization is immobilized, in lock down so to speak, and the first movements toward change are likely to produce denial, depression or a level of dysfunction within the organization. The abrupt decrease in the performance of the organization can be unsettling for those involved if they are not prepared for it.

It process can be likened to a semi-professional golfer who hires a top flite golf pro-to help him take his game up to a professional level.

The golfers score is likely to get worse before it gets better as the pro-helps him unlearn his habits which stand in the way of making progress. Systems pushed far from their equilibrium are extremely sensitive to tiny changes in their environments. (Therefore) An innovation, or a new strategic direction can only occur if instability is first experienced. (Stacy, 1993: 172). This is a normal part of the change process.

At this stage, the consultant must give the organization information which can provide a psychological safety net, created discomfort, or provide information which is discomfirmation of their existing state of rest in order to create a lessening of the internal energy, and move the organization in the direction of change.

Figure 5: Lewin

Figure 5: Lewin’s Diagram of Pain and Change

The Scanning, or movement phase is the most complicated, as each level of the organization may proceed through the movement and refreezing steps of the process at different rates, and with different levels of psychological energy. This phase, as mentioned prior, must make room for failures, unexpected interruptions of the process, and remediation of participants who are having difficulty making the changes. It is during this phase of the change process that the energy of the organization is at it’s lowest, and the energy level of the consultant is at (his or her highest. The additional energy the organization need to continue to function, and process the change simultaneously is the responsibility of the consultant to provide if there is to be a successful transmogrification from the prior state to the desired conclusion.

The Refreezing stage of the process involves coaching the organization to the desired positive results. This stage included connecting the organization with positive facets of a new psychological contract. A new culture must evolve in order for the organization to internalize and personalize the change

Client Relationships, and Consultant Cultures

Confrontation will take place between the consultant and the client over overt and covert decisions, (conscious decisions and unconscious expectations) which are inherent in building a new working relationship. (Neumann, 1994) But by taking inventory of the consultant’ and the organization’s relational style, these confrontations can be greatly minimized. In same way business’s have culture, consultant organization have culture. “Differences in consulting firms lie in their professional and organizational culture.” (Nees and Greiner, 1987) There have been many 4 quadrant diagrams put forth regarding culture, personality type, and the effects of each on communication / interaction styles. Each of these 4 quadrant diagrams offer basically similar information.

Because the 4 basic personality types haven’t changed from the time that Greek philosophers undertook the task of understanding personality, it is useful to note these styles, a and look for their trademarks in the yourself, and in the consultancy with which you are a member, and in the organization that hires you. By understanding the implications of these communication, and personality styles, the consultant will be in a greater position of influence, and will be more prepared for the manner in which (s)he must deliver their data in order to be respected, and received.

The Greek philosopher Aristotle divided the human personalities into earth, fire, wind and water. Author and counselor ____ identified the same divisions as animals for easy identification. He identified the Lion, the dog, the otter, and the beaver. Just as these animals would be difficult to confuse if discovered roaming on a hilltop, once the consultant understands the 4 personality types, and their trademark tendencies, it will be simpler to identify his of her communication tasks.

For our purpose, we will use the categories Powerful Choleric, Popular Sanguine, Peaceful Phlegmatic, and Perfect Melancholy (Littauer, 1998). The powerful choleric person is task driven, and wants to know the bottom line of a situation without getting lost in the details. (S)he is likely to make decisions slowly, but once the decisions are made, (s)he expects instant action, leading to clearly defined results. This person is a dominant personality in any room or meeting. In the animal metaphor, (s)he is the lion. His take no prisoners attitude will make him your best ally, or your worst nightmare in the consulting process.

The peaceful sanguine is an influencer. (S)he is concerned very little with schedules, deadlines, and details.. This persons skills lie in the direction of understanding people, gaining their trust, and motivation them from within. This person will be the first to understand the organizational culture issues. He also will know everyone’s birthday, favorite flavored coffee, and what their major clients were wearing on their last visit. However, this person can often be confused with someone who cannot keep deadlines, and likes to ‘play instead of work.’ Continuing with the animal metaphor, this person is the otter.

The Peaceful Phlegmatic is a steady, and faithful worker / manager. This person will faithfully fulfill the duties of his or her position for 30 years, with little complaint. This person also can be the source of some of the best feedback. Unbiased, the phlegmatic will be the one who can most often offer objective insight into situations. Although they will not likely do so unless they are sure there will be no unpleasant repercussions, because this person is motivated to not rock the boat. In the animal metaphor, this person is the dog.

Finally, the person which successful organizations have in the position of controller, or accountant is the beaver, the Perfect Melancholy. This person is motivated to maintain flawless track of every detail. There desks are immaculate, their clothing is most often entirely in keeping with the culture of their organizations. The melancholy wants to be able to rely on the hard facts, and will micro manage a situation until it is left lifeless on the conference table if (s)he is allowed to do so.

Because organizations are most often psycho dynamic children of their founder, it is helpful to understand what these four personality types want, what they lean toward, their strengths and their weaknesses before entering into the consultancy process.

What is true in the individual personality, and the organization’s culture is also true in identifying the communication style, strengths and weaknesses of the consultancy. The style of consultancy affects relative amount of power, they will have, or be given by the client. Consultancies have also been divided into 4 categories by modern researchers. But in a closer analysis, these labels are also derivation of the 4 unchanging personality types.

The Radical Humanist consultancy focuses on the interaction of the individual with his world. The individual is striving for personal fulfillment, and therefore the organization must shift it’s paradigm to develop the individual’s purposive activity while in the community. This consultancy culture is the Influencer, the people person style of communication. This style of consultancy is least likely to be successful with the organization run by, and/or having the organizational culture of the choleric. The bottom line, results driven nature of the choleric will never tolerate the esoteric leanings of the radical humanist consultancy. Equally true is that this style of consultancy will be equally less successful with clients who share the same communication style. Their strengths and weakness will be so similar that it might be difficult to objectively identify the element which will bring about true change. But they will have a lot of fun together.

The Fundamental Structural Change consultancy approaches life, and business from a structural, priority-based paradigm. This choleric perspective on business operations examines the root causes of systems, and asserts that by making an objective, non-emotional assessment, that the best results will be found. This consultancy interacts well with most companies, but will have a tendency to overanalyze, looking for absolute answers. The weakness of their approach is that the change process may not be designed with enough allowance for the human element, and unexpected events.

The Interpretative consultancy claims that while there is a dominant reality in an organization, this reality is the process of constant negotiation between members. In the post modern business world, this consultancy style recognizes the reality of chaos, and our interaction with it, but seeks to incrementally move toward non-neurotic behavior. This consultancy best understand the workings of people, and their interaction with the culture of their environment. In the animal metaphor, this style of consultancy is the dog, or the phlegmatic style of understanding, deeply empathic, and motivates toward change by consistently applying principles of change, interwoven with psycho-analytical understanding.

The forth consultancy, the corporatist consultancy, is driven to understand all the details of their client, and seeks to bring managed change in an orderly and progressive manner. If a bank or accounting firm needs a consultancy to work with, this type of organization would be the best fit. This consultancy looks at organizations as systems, and by managing the details of the systems to perform well together, the belief is that the entire organization will work more effectively.

The final animal in our mini-zoo is the beaver. Methodical, persistent, and tireless the corporate consultancy applies its talents until the task is completed. This consultancy is operated cheifly by melancholy personalities.

By understanding the interactive styles of the organizations which are entering into the consultancy relationship, the consultant contributed significantly to overcoming inherent suspicions of the clients. When the consultant, and their client are ‘speaking the same language’ many potential disagreement, or misunderstandings are eliminated from the equation. Another tool for the consultant to use as part of the change process is to engage clients in creating a list of expectations and issues (Tranfield and Smith, 1991). This should happen early on in the contract negotiations, but it is mentioned here because this simple task should be undertaken in light of the organizational understanding of culture, style, process, and personality. Buy creating an expectation index, the consultant and the client can begin to determine if there are a good fit, i.e.: is the client right for the consultant, and consultant right for the client? Cummings and Worley suggest the following set of considerations:

Clarification of the organizational culture issue. Where is the solution going to be found? This process will help both overcome simple assumptions.

Is the client right for the consultant, and consultant right for the client?

This process will also help the consultant identify the nature and identity of the actual client and the client system.

The differences in consultancy styles can be seen in their operational characteristics. Understanding these issues help the consultants recognize that they may have favorite approaches, but does it really fit the situation (French and Bell, 2000).

Some large consulting companies, such as Andersen Consulting and Ernst & Young, have pursued a codification strategy. Over the last five years, they have developed elaborate ways to codify, store, and reuse knowledge. Knowledge is codified using a “people-to-documents” approach: it is extracted from the person who developed it, made independent of that person, and reused for various purposes. This approach allows many people to search for and retrieve codified knowledge without having to contact the person who originally developed it. That opens up the possibility of achieving scale in knowledge reuse and thus of growing the business.

By contrast, strategy consulting firms such as Bain, Boston Consulting Group, and McKinsey emphasize a personalization strategy. They focus on dialogue between individuals, not knowledge objects in a database. Knowledge that has not been codified — and probably couldn’t be — is transferred in brainstorming sessions and one-on-one conversations. Consultants collectively arrive at deeper insights by going back and forth on problems they need to solve.

These examples of the initial perspective given to a perspective clients is based on the culture of the consultancy itself. Impression management (Goffman, 1969) is the practice selling our perspective as a more accurate representation of the world, or system in order to persuade others to follow our advice. By knowing the consultants’ own style, and that of their potential client, the impression management already has a database of information from which to build the first interaction.

In recent years, the understanding of the relational styles of individuals and organizations has begun to affect other fields as well, giving credibility to these research behind these practices. The field of Human Resource Management has also moved to consider not only micro but also macro relationships and relationship styles (Butler et aL, 1991). The micro focus, evolving from industrial psychology of the late industrial era (Kaufman, 1993), emphasized human resource policies and their influence on individuals. This focus was concerned exclusively with such outcomes as job satisfaction and employee participation. The macro focus shifts the level of analysis from the individual to include the organization. This macro orientation stresses how organizational policies shape individual behavior that ultimately affects organizational-level outcomes such as profits, sales, quality, and growth.

Recent work has extended the simple contingency view to a configurational perspective. This perspective contends that internally consistent policies and practices should result in even higher levels of performance than individual policies and practices when matched with business strategy (Dyer and Reeves, 1995; Delery and Doty, 1996).

Psychological Contracts

The explosion of interest in the changing relationship between employers and employees among academics (e.g., Hendry and Jenkins, 1997; Sims, 1994; Sparrow, 1996) has added greatly to the body of research on the subject. The social contract in employment, which consist of expectations of reciprocal obligations between firms and employees, is touted to have changed as a result of changes in the business environment (Capelli et al., 1997). A review of the literature indicates wide, though not universal, consensus regarding the nature of the new employment relationship. Moreover, articles typically reflect an assumption that the new employment relationship is found across organizations and situations and that it is reflected in employer and employee beliefs regarding respective responsibilities or obligations (e.g., Kessler, 1994; McLean Parks and Kidder, 1994). However, no reported study specifically tests the extent to which the widely assumed “new employment relationship,” or social contract between firms and employees, is actually reflected in the beliefs or expectations of different populations.

In consideration of the organizational cultures within an organization, and how they affect the commitment of the staff to the organization, it is necessary to take into consideration the expectations of the staff when they enter the organization.

The expectancy model states, “People are motivated to work when they expect to achieve things they want from their jobs. A basic premise of the expectancy model is that employees are rational people. They think about what they have to do to be rewarded and how much the rewards mean to them before they perform their jobs.” (Hellriegel, Slocum, Woodman, 2001, p.146)

In addition, Hellriegel, Slocum, and Woodman explained that individuals decide their jobs are based on their needs, motivations and past experiences. “The expectancy model holds that work motivation is determined by individual beliefs regarding effort-performance relationships and the desirability of various work outcomes associated with different performance levels.” (Hellriegel, Slocum, Woodman, 2001, p.147) Decisions about how much to produce, how much to work and the quality of workmanship (job-performance decisions) are solely depend on the individual’s level of motivation. Staff of an organization can enter into the work contract with a moderate level of expectancy, and an emotional connectedness to the reward they expect. However, the organizational culture can, and will have a transformational effect on that emotional contract, and influence their staff positively or negatively. In the scope of the change process introduced buy the consultant, if the psychological contract is violated during the unfreeze – move – refreeze process, the organization risks losing key employees during a business phase in which it can least afford to do so.

The idea of a psychological contract coincides with the expectancy model. When a worker can voluntarily make an agreement with an employer to provide services for compensation, there is a negotiated contract, if only negotiated emotionally. The worker agrees that his or her material and non-material compensation is of equal or more value than the time, energy and effort (s)he will supply to the organization. Similarly, the organization agrees to provide material and non-material compensation in return for the resources, time, talent, and energy of the staff member. These psychological contracts have become of more importance as the diversity of a population increases. The reasons Tom Jones works for ABC Widget company may be completely different than the psychological goals of Jim Smith. During the change process, if the consultant is aware of the rewards and benefits that a majority of employees gain from their relationship to the organization (often another function of organizational culture) (s)he can guide the change process in such a was as to reinforce, and not threaten those contracts.

The psychological contracts, or level of organizational commitment between a company and its staff is has been described as consisting of three constructs — affective, continuance or cost based, and normative, or moral based. (Allen & Meyer, 1990). As defined by Mowday, Porter, and Steers (1982, p.27), affective organizational commitment is:

strong belief in and acceptance of the organization’s goals and values willingness to exert considerable effort on behalf of the organization strong desire to maintain membership in the organization.

Affective commitment is mostly attitudinal in nature. An employee becomes emotionally attached the organization and perceives a congruence between his or her goals and those of the organization. (Mowday et. al., 1982).

The second basis for organizational commitment is continuance organizational commitment, or calculative commitment. This result from the worker’s entering into an exchange relationship with the organization.

The third aspect of organizational commitment is normative. This level of organizational commitment is based on the social behaviors, or internalized desires within the staff member to be part of the organization.

Figure 6 graphically represents the complex relationship between a given job characteristics, and staff members expectancies, psychological contracts, factors that enable the given staff member to keep their personal psychological / emotional contracts, and the resulting organizational commitment. These factors are multi-leveled, and represent sets of hopes, personal values, goals, priorities that may be different for each staff member. As part of the managed change process, the consultant should identify the primary, and secondary psychological contracts of the staff, their reasons for continuing the relationship so that these elements can be woven into the process.

Figure 6: Elements of Organizational Committment

Interaction with the Company Culture in Order to Facilitate Change

Case Study:

The project was to improve productivity and morale at each plant owned and operated by Acme Minerals Extraction Company. Phase one — implemented in early 1995 at the site in Wichita, Kansas — looked like a stunning success by the middle of 1996. Productivity and morale soared, and operating and maintenance costs decreased significantly. At the next plant in Lubbock, Texas, consultant Jimenez tried to duplicate the results and something went terribly wrong.

The techniques that had worked so well in Wichita met with only moderate success in Lubbock. Productivity improved marginally and costs went down a bit, but morale actually suffered In evaluating the problem in the broad context of the company’s history. Jimenez learned that within the past decade, Acme had been in bad financial shape. But what had really brought things to a head was a labor relations problem. While the Wichita plant took aggressive steps to solve the relation problems, others allowed the labor -vs.- management dispute to continue to simmer just below the surface. As Jimenez applied her recommendations for change, the attitudes at one plant were ready for the changes, while the others still operated in a competitive framework. The workers and management

Interaction with the Company Culture in Order to Facilitate Change

Case Study:

In order for the consultant to affect positive, and lasting change within the organization, (s)he must take all of these issues into consideration. The political perspective of change believes that a linear framework does not address the political, or cultural aspects of change. Change must be addressed in terms of personalities, preferences and values as well as the structure and process of the company,. (Markus 1983) The assumption that “decisions can simpley be made to pass down the organizational hierarchy without questions, reinterpretation, or resistance” (Knights and Willmott. 2000: 10) often is short sighted, and short lived.

Consultants, in the final stages of their assignments, are managers who are catalysts of the requested change, or by definition change agents – “People who act as catalysts and manage the change process.” (Robbins, Bergman, Stagg and Coulter, 2000, p.438)

Change is “An alteration in people, structure and/or technology.” (Robbins et al., 2000, p.437) and in the modern consultancy setting, the changes occur in all three of these areas.

An organization’s environment has both specific and general components, or micro and macro environments. The organisation also has its own personality or culture. This environment and culture can be the generator of forces for change. Needs from within the organisation can stimulate change, these are internal forces for change. “Of course, the distinction between external and internal forces is blurred because an internally induced change may be prompted by the perception of an external event.” (Barney & Griffin, 1992, p.755)

So, as the consultant moves toward the initiating the changes, effective planning which takes into consideration these factors is an important key toward his or her success. Since change is essentially “a process that involves defining the organisation’s objectives or goals, establishing an overall strategy for achieving those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities” (Robbins et al., 2000, p.247) planning can “reduce uncertainty by forcing managers (consultants) to look ahead, anticipate obstacles to the projected change, consider the impact of change and develop appropriate responses.” (Robbins et al., 2000, p.247) Planning enables us to best cope with and manage change.

The change process created by the consultant can be modelled by two different metaphors: calm-waters and white-water rapids. The calm waters model involves unfreezing changing and refreezing, as first proposed by Lewin’s model of change. In this environment of predicability the calm waters metaphor is an apt model. The organisation is in a stable environment and can anticipate change so it goes through a process of unfreezing, changes implemented to overcome differences and meet new goals, and refreezing to keep changes in effect and return to stable environment.

Plans are difficult to develop for a dynamic, or white water environment. “This calm waters metaphor has become increasingly obsolete as a way of describing the kind of seas that managers in today’s organisations have to navigate.” (Robbins et al., 2000, p.441) This calm waters metaphor “… is not very helpful to people faced with the detailed task of bringing change about.” (Barney & Griffin, 1992, p.757) Today the white water-rapids metaphor is more prevalent in organisations. It is a more comprehensive model. The white water-rapids metaphor depicts change as an ever-present perpetual event. An organisation in white-water rapids is in an uncertain dynamic environment. Disruptions to the status quo may never stop. Managers in this chaotic world need to respond quickly to every changing condition.

An organisation that is well structured for change is often referred to as organic. An organic organisation has the structural characteristics such as wide span of control, cross-functional teams, free flow of information and low formalisation. Organic organizations have “organizational structure that is highly adaptive and flexible with little work specialisation, minimal formalisation and little direct supervision of employees.” (Robbins et al., 2000, p.362)

Organic structures incorporate the use of teams. Teams use a much flatter design of management. The environment and that we create through change and trying to encourage change is one that is conducive to stimulating innovation. We need to have flexible structures, good communication, and culture that is relaxed and supportive of new ideas. An organisation’s culture can be a prevailing force for innovation or seriously threaten the innovative endeavour. Crucial to the implementation of cultural change is management’s ability to use leadership and provide a shared vision of the future. In a chaotic, dynamic world of change we must be able to come up with new ideas and inventions in order to compete in the global market.

In order to understand the management of change, an analysis of the ways in which resistance to change, and the ways this becomes evident within organisations is helpful. Considering this question is a presursor to determining what strategies consultants can adopt to overcome such resistance when planning, and implementing change programs

Change, at its core is the process of moving from one state to another. Just as moving house requires the massive packing of furniture and other items, change requires just as much preparations to be successful. Most people do not like change, we like things to remain the same. Changes require more effort from us to adapt. Change threatens our stability and security and we fear that we will not be able to cope with the change. Resistance is the natural defense to such perceived threats. Reasons for this range from as trivial (though not trivial to the person) as not knowing how to take a bus home (in the instance of a shift in the office) to as serious as fearing the loss of job or status. Some of the specific, and identifiable resistance mechanisms are:

Fear of the unknown; The person does not know what is happening and why it is happening. Employees do not like to be kept in the dark. They want to be kept informed of happenings, especially when it will affect them, so that they can prepare themselves for any onslaught.

Disrupted habits: Older employees especially who are set in their ways get upset when they are told that they can no longer use the old method of doing things.

Loss of face: in a new environment, employees may not perform to their previous levels of proficiency. This in turn can cause an additional lack of confidence.

Loss of confidence: The employee feel that he cannot perform just as well under the new way of doing things.

Loss of control: The sense that “things being done ‘to’ you rather than ‘*by’ or ‘with’ you.”

Poor timing: In these times, when changes are happening frequently, the employee will feel overwhelmed by the many changes and also that things are moving too fast.

Work overload: When employees energy is already consumed by the traditional workload, they do not have spare energy, physical or psychic to commit to the change.

Lack of purpose:Those involved with the change do not see any reason for the change and/or do not understand the benefits.

As a result, orgnazational members respond or react with conscious and unconscious defense mechanisms. Just as we resist physically when someone tries to assault us, an organization, or its individual members can use resistance as a defense mechanism, when we perceive any change as a threat. Resistance can be overt or implicit, direct or indirect, passive or agressive, depending on the personality of those involved, and the level to which the resistor feels threatened, or that direct opposition will be successful.

During the consultancy process, the consultant must be alert to signs of:

Overt resistance: When resistance is overt and immediate, it is easiest to dealt with, as the causes for the resistance is normally easily discernable

Implicit resistance: Implicit resistance is more subtle; the loss of loyalty to the organisation, loss of motivation to work, increased errors or mistakes, increased absenteeism

Deferred reactions, or passive-agressive resistance: Blurring the link between the source of resistance and reaction to it, covert resistance may produce what appears to be only a minimal reaction. A single change in and of itself has little impact, But it has the potential to be the ‘straw that breaks the camel’s back’

Reactions to change can build up and then explodes in some response that seems totally out of proportion to the change it follows. The resistance has merely been deferred and stockpiled. What surfaces is a response to an accumulation of previous changes, or unadressed factors.

Symptoms of resistance to change can take many forms, but it will help the consultant if (s)he can identify and remember that these are symptoms to a problem, not necessarily the problem. In considering a response, these symptoms are like a red spot on a person’s arm that is the sign of an underlying infection. The sympton will recede when the underlying issues are addressed. Equally important is the recognition that the symptoms, if left unadressed, can hinder the change process, cause it to stall, or even regress. The alert consultant will respond in swiftly, and in appropriate measure to these symptoms.

Aggression: Showing hostility toward supervisor or fellow employees

Fantasy: Day dreaming of another world where the change is non-existent.

Regression:Manifesting childlike behaviour such as crying, pouting to attract attention in the hope that the change will be abandoned by sympathetic superiors.

Resignation/avoidance: Having excessive absenteeism or tardiness, or having a high sick-leave rate.

Negativism: Putting up strong and irrational resistance to accepting the suggestions of others, so as influence others into the same thinking that the change is bad.

Compensation: Exhibiting exaggerated behaviour such as using big words, being bossy to show that he/she is not afraid of the change, contrary to internal emotions.

Rationalisation: Making excuses for one’s behaviour in order to come to terms with one’s own feelings

Projection: Blaming others for the problem.

Resistance to change is not always dysfunctional. It can provide a vehicle for employees to release pent-up frustrations. Rather than let those frustrations fester, overt resistance allows employees to bring their feelings to the surface. Management can then address employee concerns, help them understand the change better, and lessen its threat. Employee resistance may also bring to light problems in a change proposal that management had overlooked. In an odd way, employee resistance is a form of checks-and-balances on management and acts to preserve the organisation’s culture.

As the consultant manages the change process, (s)he should develop plans to adjust to the scope of encountered resistance. Some methods can include:

Education and remediation: Resistance can be reduced through communicating with employees to help them see the logic of a change. This tactic basically assume that the source of resistance lies in misinformation of poor communication. If employees receive the full facts and get misunderstandings cleared up, resistance will subside.

Participation: It is difficult for individuals to resist a change decision in which they participated. Prior to making a change, those opposed to it should be brought into the change process. Assuming that the participants have the expertise to make a meaningful contribution, their involvement can reduce resistance, obtain commitment, and increase the quality of the change decision.

Facilitation and support: Change agents can offer a range of supportive efforts to reduce resistance. When employee fear and anxiety are high, new skills training,

Negotiation: Another way for the change agent to deal with potential resistance to change is to exchange something of value for a lessening of the resistance. Example, the resistance is centred in a few powerful individuals, a specific reward package, or a specific measure of inclusion in the change process can be negotiated that will meet their needs.

Research Question big bang or slow road. Internal arrangements and external environment.

Methodology and Procedures

Assumptions, Limitations, and Definitions

Data: Actual findings

Implications for Improvement of Practice

Conclusion

Additional Re-search

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