UNDERSTANDING CHANGE DYNAMICS: EXAMINING THE UNDERLYING PATTERNS THAT SHAPE ORGANIZATIONAL CHANGE by Katherine A. Heynoski A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy (Industrial and Operations Engineering) in The University of Michigan 2011 Doctoral Committee: Professor Jeffrey K. Liker, Chair Professor Robert E. Quinn Professor Lawrence M. Seiford Jeffrey A. Morrow, Bombardier Aerospace © Katherine A. Heynoski 2011 DEDICATION For my family, who inspires and uplifts me in countless ways especially my daughters, Regan and Riley, who remind me of the importance of balance. ii ACKNOWLEDGEMENTS Throughout my time in the doctoral program at the University of Michigan, I have benefited from the support of a number of people. First, I would like to thank the members of my dissertation committee for their unwavering support and guidance. The past seven years have been a period of tremendous personal and professional growth, and each of you have contributed to my development in your own way. I want to thank my committee chair, Jeff Liker, for helping me formulate my research topic while still giving me the freedom to pursue the areas of research that interest me. Your ongoing feedback helped me clarify and advance my writing. Jeff Morrow, thank you for introducing me to cultural consensus theory and for helping me develop this line of research. I value your insightful comments, which always push my thinking in new directions. Bob Quinn, thank you for helping me identify and structure important themes from my qualitative data. I have benefitted enormously from our conversations. Larry Seiford, thank you for having an open door whenever I had an issue or concern. I have gone through a number of transitions during graduate school, and your advice has been invaluable. I also want express my gratitude to the employees of the two companies where I conducted my research. Thank you for sharing your time and experiences. I continue to be blessed with an incredible network of family and friends. I especially want to thank my husband, Joe. I would never have had the courage to leave the security of my job and return to school without your encouragement. We both had to leave behind the comfort and familiarity of home to move to Ann Arbor, and during this adventure we have been rewarded two beautiful daughters and many amazing friendships. Thank you for giving me the push I needed to start this journey and for shouldering extra responsibility at home so I could complete it. I also want to thank my parents, Dennis and Roberta, and my parents-in-law, Hank and Cindy, for their constant support. You are always ready to step in at a moment‟s notice whenever we need a hand. iii Mom and Dad thank you for encouraging my curiosity and fostering a love for learning that has brought to where I am today. A final thank you goes to my colleagues at the University of Michigan. You have enriched my experiences in graduate school with your support and friendship. In particular, I want to thank my favorite support group, LGSSG. Katrina, Sarah, and Brock- thank you for critiquing my early drafts and for helping me feel connected while I was working remotely. iv TABLE OF CONTENTS DEDICATION................................................................................................................... ii ACKNOWLEDGEMENTS ............................................................................................ iii LIST OF TABLES ......................................................................................................... viii LIST OF FIGURES ......................................................................................................... ix LIST OF APPENDICES .................................................................................................. x ABSTRACT ...................................................................................................................... xi Chapter 1 Introduction ................................................................................................. 1 1.1 Research Questions .............................................................................................. 2 1.2 Research Context .................................................................................................. 5 References ....................................................................................................................... 7 Chapter 2 The Paradox of Rational Management: Reproducing Bureaucracy in Narratives of Change ........................................................................................................ 9 2.1 Change as Evolving Discourse ........................................................................... 11 2.1.1 Identity ........................................................................................................ 13 2.1.2 Relational .................................................................................................... 13 2.1.3 Ideational..................................................................................................... 14 2.2 Narrative Constructions of Meanings ................................................................ 14 2.3 Reseach Setting & Methods ............................................................................... 15 2.3.1 Case Overview and Selection ..................................................................... 15 2.3.2 Research Methods ....................................................................................... 22 v 2.3.3 Data Analysis .............................................................................................. 25 2.4 Findings .............................................................................................................. 25 2.4.1 Dominant Narrative Pattern: Reproducing a Coercive Bureaucracy .......... 26 2.4.2 Divergent Narrative Pattern: Creating an Enabling Bureaucracy ............... 39 2.5 Discussion Section ............................................................................................. 45 2.5.1 Managing Paradox through Narratives ....................................................... 45 2.6 Conclusion .......................................................................................................... 50 References ..................................................................................................................... 51 Chapter 3 Culture and Operational Excellence: Cultural Consensus Analysis as a Methodology to Assess Alignment .............................................................................. 56 3.1 Change as a Cultural Transformation ................................................................. 57 3.2 Value Orientation and Continuous Improvement .............................................. 59 3.2.1 The Toyota Production System as a Model for Continuous Improvement 59 3.2.2 Defining Value Orientations ....................................................................... 62 3.3 Evaluating Value Orientation: Cultural Consensus Analysis ............................ 66 3.4 Research Setting & Methods .............................................................................. 67 3.4.1 Case Selection and Overview ..................................................................... 68 3.4.2 Quantitative Sample and Measures ............................................................. 69 3.4.3 Qualitative Sample and Analysis ................................................................ 71 3.5 Findings .............................................................................................................. 72 3.5.1 CCA Cultural Profiles ................................................................................. 72 3.5.2 Qualitative Evaluation of Value Orientation .............................................. 75 3.6 Discussion Section ............................................................................................. 80 3.7 Directions for Future Research .......................................................................... 82 References ..................................................................................................................... 84 vi Chapter 4 Change as the Loss and Reinvention of Control .................................... 91 4.1 Multiparadigm Approach ................................................................................... 93 4.2 Review of Dominant Change Paradigms ........................................................... 94 4.2.1 Planned Change .......................................................................................... 94 4.2.2 Emergent Change ........................................................................................ 95 4.2.3 Bridging Perspectives of the Planned – Emergent Change Duality ........... 96 4.3 Research Setting & Methods .............................................................................. 98 4.3.1 Case Selection and Overview ..................................................................... 98 4.3.2 Data Collection ......................................................................................... 100 4.3.3 Data Analysis ............................................................................................ 101 4.4 Findings ............................................................................................................ 102 4.4.1 Case Study 1: Retaining Control through Separated Planned