A Model for Organizational Transformation
Most people who live and work in organizations have experienced initiatives designed to make the organization different.
Training programs are implemented to develop new skills. Management systems and processes are designed to simplify and better integrate activities. Philosophy and vision statements are circulated to provide inspiration.
These initiatives are usually based on lofty objectives. But no matter how well-intended they may be, they often fail to produce the desired results. They tend to limit their success by focusing only on changing behaviors, thereby producing an immediate compliance with the letter of the change, but not the spirit. Thus, even when they do succeed in creating behavioral changes, those changes are often compared to “rearranging the deck chairs on the Titanic” – minor changes that don’t significantly affect the overall organization.
Yet some organizations are successful in creating a fundamental change in their mission and how they perform it.
In these successful organizations, the difference seems to be that the change effort is focused on the underlying values, norms, assumptions, and beliefs of the collective of people who work in the organization – instead of only on immediate behaviors.
In other words, the organization focuses on creating transformational change.
What Is Transformational Organizational Change?
Transformative changes are those that move the organization from one set of primary belief systems to another in various dimensions. These changes include:
| Dimension of Change | Moving From | Moving Toward |
|---|---|---|
| How we interact with others inside the organization | In competition or in isolation | With collaboration and teamwork |
| How we view our employees | Need to be directed and controlled | Need to be developed and enabled |
| How we structure ourselves | In clearly defined roles with clearly defined boundaries between units and people | In a fluid manner, adapting to changing conditions and needs |
| How our organization grows and develops | Based on learning from those at the top of the organization | Based on learning that occurs at all levels of the organization |
These types of change represent a profound shift in an organization’s identity, manner of functioning, and the nature of its internal and external relationships.
Change at this level requires an understanding of the dynamics of transformational change.
The Transformational Change Model
To create transformational change, five major activities must be undertaken…
Step 1: Create Vision
The organization must possess a compelling picture of what kind of organization they will be once the transformation has occurred.
- What will we do?
- How will we work?
- What impact will we have?
- What is it like to work here?
Step 2: Align Stakeholders
A critical mass of key stakeholders inside and outside the organization must feel a sense of shared ownership of, and commitment to, the vision of the future. In some instances, critical mass may require a broader level of alignment ownership than in others. The need varies based on factors such as…
- Who is affected by the change
- How extensively they will be impacted
- How much resistance is anticipated
Step 3. Empower People and Groups
All people and groups who have a significant role to play in bringing about the vision’s fulfillment must be empowered if the vision is to be realized. Empowerment occurs across four dimensions…
- The granting of authority and encouragement of its use.
- The development of skills and knowledge so people can be successful.
- The availability of support, including resources, equipment, coaching, and guidance.
- The establishment of accountability to achieve results within acceptable parameters.
Without these elements, empowerment is incomplete, and may even be destructive. When all four are present and the individuals are aligned, then their energy is focused on moving towards the vision.
Step 4: Align Systems, Structures, and Processes
Relevant systems, structures, and processes within the organization must be designed to support the vision. The structure of working relationships, design of work processes, policies and procedures of the organization, physical layout, geographic and architectural design – all of these and other structural factors either support or obstruct the fulfillment of the vision.
To the extent that the systems, structures, and processes are compatible with the vision, the transformational effort works “with gravity”; to the extent that they are out of synch, the effort works “against gravity.”
Step 5: Focus on Results
Broad alignment to a clear vision, effective empowerment, and supportive systems equip the organization to implement transformative change.
The final critical factor is continual focus on measuring the actual impact of the effort against the vision. This focus on results is essential for three core reasons.
As the organization begins moving toward the vision, identifying and acknowledging accomplishments and gains provides additional confidence and inspiration.
As the organization assesses its own movement, it learns from its experience and increase its capabilities and momentum.
Awareness of the gap between the organization’s current reality and its vision creates a kind of structural or creative tension that helps to propel the organization forward.
Applying the Model
This overall model is useful in designing and conducting efforts to transform, or fundamentally change, an organization.
Of necessity, the five dimensions in this Transformational Change model are presented in a linear fashion. However, change is not linear, and the dimensions are therefore not necessarily implemented in the order outlined here.
For instance, many organizations use a very participatory process for developing their vision. This involvement of people in the process generates a high level of alignment with the vision, and begins to empower them as they participate.
There are many strategies which could be employed to address any of the five dimensions. To be successful, the organization must design its approach based on its own needs, culture, and requirements.
The architecting of the transformational change process must be specific to the organization’s mission and culture.
This model can be a powerful tool – and it is not prescriptive, and certainly not a substitute for judgment.
It is a way to orient an organization to the critical dimensions requiring attention in a serious attempt to change in fundamental ways.
The Critical Role of Leadership
However it is used, the applications of this model must be based upon deep, lasting commitment on the part of the organization, and especially on the part of the organization’s leadership.
Leading a transformational effort requires understanding, time, energy, focus, and resources on the part of many people in the organization, especially leadership. Fortunately, the transformational process tends to spread leadership quickly and broadly, empowering more and more people inside and outside the organization to assume stewardship as the organization moves into the desired future.
