Praise for the previous editions of Making Sense of Change Management ‘I commend it highly. It has a good coverage of relevant theoretical work while at the same time giving plenty of practical examples. It is written in an accessible style that engages the reader and it is full of useful ideas without being overly prescriptive or formulaic.’ Philip Sadler, author of a number of acclaimed business titles and former chief executive of Ashridge Business School ‘I really enjoyed this book. I like the straightforward approach, the inclusion of the author’s opinion and the insight provided by the case studies. This book will be very useful for those business managers in my organization who need to prepare themselves for tackling major organizational change.’ Andy Houghton, Managing Director of YSC and former Head of Organization Development, Retail Direct, Royal Bank of Scotland Group ‘There has long been a need for a readable, practical but theoretically under-pinned book on Change which recognized a multiplicity of perspectives. By combining the behavioural, humanistic, organizational and cognitive perspectives and by helping the reader make sense of what each perspective brings to understanding Change, this book should help students and practitioners. By linking in work on personality tests such as MBTI™ the book breaks new ground from a practitioner point of view not least because these tests are widely used in practice. I thoroughly recommend it.’ Professor Colin Carnall, Chief Executive, Executive Education, Cass Business School ‘If you’re interested in successfully managing and leading change, then read this book! It not only covers change from both the individual and organizational perspective, but also increases the number of options available to you.’ Judi Billing, former Director of IDeA Leadership Academy, Improvement and Development Agency ‘Change is a huge thing wherever you work. The key is to make change happen, and make it happen well – with everyone on side, and everyone happy. This book i provides an extremely stimulating and accessible guide to doing just that. There are a few people at the Beeb who could do with this. I’ll definitely be placing copies on a couple of desks at White City.’ Nicky Campbell, Presenter Radio Five Live and BBC1’s The Big Questions ‘This book is a great resource for managers thrown into the midst of change, who need to gain understanding of what happens when you try to make significant changes in a business, and how best to manage people through it. The authors have tackled a complex topic in a lively and engaging way, leading readers through the maze of theory available and offering just the right amount of practical advice.’ Andy Newall, Group HR Director United Biscuits and former Organizational Effectiveness Director, Allied Domecq plc ‘This impressive book on change is an essential read for any professional manager who is serious about getting to grips with the important issues of making change happen.’ Dr Jeff Watkins, former MSc Course Director, Management Research Centre, University of Bristol ‘This practical handbook, combining contemporary management theory with very practical suggestions, is an indispensable tool for any manager involved in change processes. And aren’t we all ...’ Adriaan Vollebergh, Director, Tata Steel Europe ‘This is a book which lives up to its title. By combining a guide to the ideas of key thinkers on change and useful tips for making change happen, it really does provide a toolkit to help us to make sense of change. It is useful to see a focus on the individual, team and organizational levels, and in particular, on the role of the leader in the change process. It is written in a way that makes the book interesting to read both at length as well as to dip into.’ Dr Richard McBain, Head of Postgraduate Post Experience Programmes, Henley Business School ii MAKING SENSE OF CHANGE MANAGEMENT iii THIS PAGE IS INTENTIONALLY LEFT BLANK iv MAKING SENSE OF CHANGE MANAGEMENT THIS PAGE IS INTENTIONALLY LEFT BLANK A complete guide to the models, tools and techniques of organizational change 3rd edition Esther Cameron and Mike Green v Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and authors cannot accept responsibility for any errors or omissions, however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or either of the authors. First published in Great Britain and the United States in 2004 by Kogan Page Limited Second edition 2009 Third edition 2012 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be repro- duced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 120 Pentonville Road 1518 Walnut Street, Suite 1100 4737/23 Ansari Road London N1 9JN Philadelphia PA 19102 Daryaganj United Kingdom USA New Delhi 110002 www.koganpage.com India © Esther Cameron and Mike Green, 2004, 2009, 2012 The right of Esther Cameron and Mike Green to be identified as the authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. ISBN 978 0 7494 6435 6 E-ISBN 978 0 7494 6436 3 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Cameron, Esther. Making sense of change management : a complete guide to the models, tools, and techniques of organizational change / Esther Cameron, Mike Green. – 3rd ed. p. cm. Includes bibliographical references and index. ISBN 978-0-7494-6435-6 – ISBN 978-0-7494-6436-3 1. Organizational change–Management. 2. Teams in the workplace–Management. 3. Reengineering (Management) 4. Information technology–Management. I. Green, Mike, 1959- II. Title. HD58.8.C317 2012 658.4’06–dc23 2011048827 Typeset by Graphicraft Ltd, Hong Kong Printed and bound in India by Replika Press Pvt Ltd vi Contents Contents vii Acknowledgements xi WHO THIS BOOK IS AIMED AT 2 THE BASIC CONTENT OF THE BOOK 3 WHY EXPLORE DIFFERENT APPROACHES TO CHANGE? 4 OVERVIEW OF STRUCTURE 6 MESSAGE TO READERS 9 The underpinning theory 11 INTRODUCTION 14 LEARNING AND THE PROCESS OF CHANGE 16 THE BEHAVIOURAL APPROACH TO CHANGE 22 THE COGNITIVE APPROACH TO CHANGE 28 THE PSYCHODYNAMIC APPROACH TO CHANGE 36 T H E HUMANISTIC PSYCHOLOGY A P P R O A C H TO CHANGE 45 PERSONALITY AND CHANGE 56 MANAGING CHANGE IN SELF AND OTHERS 58 SUMMARY AND CONCLUSIONS 66 Team change 69 INTRODUCTION 69 WHAT IS A GROUP AND WHEN IS IT A TEAM? 70 WHY WE NEED TEAMS 72 THE TYPES OF ORGANIZATIONAL TEAMS 73 HOW TO IMPROVE TEAM EFFECTIVENESS 82 WHAT TEAM CHANGE LOOKS LIKE 85 THE LEADERSHIP ISSUES IN TEAM CHANGE 91 HOW INDIVIDUALS AFFECT TEAM DYNAMICS 95 HOW WELL TEAMS INITIATE AND ADAPT TO ORGANIZATIONAL CHANGE 101 SUMMARY AND CONCLUSIONS 105 Organizational change 107 HOW ORGANIZATIONS REALLY WORK 108 M O D E L S O F A N D APPROACHES T O ORGANIZATIONAL CHANGE 119 SUMMARY AND CONCLUSIONS 147 Leading change 151 INTRODUCTION 151 VISIONARY LEADERSHIP 156 ROLES THAT LEADERS PLAY 166 LEADERSHIP STYLES, QUALITIES AND SKILLS 174 D I F F E R E N T LEADERSHIP F O R D I F F E R E N T PHASES OF CHANGE 184 T H E IMPORTANCE O F SELF-KNOWLEDGE A N D INNER RESOURCES 192 SUMMARY AND CONCLUSIONS 197 The change agent 201 INTRODUCTION 201 MODELS OF CHANGE AGENCY 202 THE CONSULTING PROCESS 205 CHANGE AGENT TOOLS AND FRAMEWORKS 215 COMPETENCIES OF THE CHANGE AGENT 226 DEEPER ASPECTS OF BEING A CHANGE AGENT 233 SUMMARY AND CONCLUSIONS 252 The applications 255 Contents STRATEGIC CHANGE PROCESS 256 OVERVIEW OF STRUCTURE 258 Restructuring 261 REASONS FOR RESTRUCTURING 263 THE RESTRUCTURING PROCESS 264 RESTRUCTURING F R O M A N I N D I V I D U A L C H A N G E P E R S P E C T I V E : THE SPECIAL CASE OF REDUNDANCY 285 E N A B L I N G T E A M S T O A D D R E S S ORGANIZATIONAL CHANGE 290 CONCLUSION 296 Mergers and acquisitions 297 T H E P U R P O S E O F M E R G E R AND ACQUISITION ACTIVITY 298 LESSONS FROM RESEARCH INTO SUCCESSFUL AND UNSUCCESSFUL MERGERS AND ACQUISITIONS 304 A P P L Y I N G T H E C H A N G E T H E O R Y : GUIDELINES FOR LEADERS 319 SUMMARY 332 Acknowledgements xi GUIDELINES F O R A C H I E V I N G S U C C E S S F U L CULTURAL CHANGE 338 CASE STUDY ONE: ALIGNING THE ORGANIZATION 341 CASE STUDY TWO: REBRANDING THE ORGANIZATION 348 Introduction 1 CASE STUDY THREE: CREATING AN EMPLOYER BRAND 356 STRATEGY AND IT 365 THE ROLE OF IT MANAGEMENT 369 Who this book is aimed at 2; The basic content of the book 3; THE NEED FOR IT CHANGE MANAGERS 373 ACHIEVING PROCESS CHANGE 378 Why explore different approaches to change? 4; Overview of CHANGING THE INFORMATION CULTURE 385 NEW RULES FOR A NEW AGE 388 structure 6; Message to readers 9 SUMMARY AND CONCLUSIONS 389 Emerging inquiries 391 Complex change 393 INTRODUCTION 393 WHEN IS CHANGE COMPLEX? 394 PART ONE: THE UNDERPINNING THEORY 11 UNDERSTANDING H O W COMPLEXITY S C I E N C E APPLIES TO ORGANIZATIONAL CHANGE 395 TOOLS THAT SUPPORT COMPLEX CHANGE 405 1 Individual