Changing Gears: The Strategic Implementation of Technology PDF
Preview Changing Gears: The Strategic Implementation of Technology
Changing Gears This page intentionally left blank Changing Gears The Strategic Implementation of Technology James Carlopio © James Carlopio 2003 Softcover reprint of the hardcover 1st edition 2003 978-1-4039-0482-9 All rights reserved.No reproduction,copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced,copied or transmitted save with written permission or in accordance with the provisions of the Copyright,Designs and Patents Act 1988,or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency,90 Tottenham Court Road,London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2003 by PALGRAVE MACMILLAN Houndmills,Basingstoke,Hampshire RG21 6XS and 175 Fifth Avenue,New York,N.Y.10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St.Martin’s Press,LLC and of Palgrave Macmillan Ltd. Macmillan® is a registered trademark in the United States,United Kingdom and other countries.Palgrave is a registered trademark in the European Union and other countries. ISBN 978-1-349-50953-9 ISBN 978-0-230-59601-6 (eBook) DOI 10.1057/9780230596016 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Carlopio,James Changing gears :the strategic implementation of technology / James Carlopio. p.cm. Includes bibliographical references and index. 1.Technological innovations. I.Title. T173.8 .C365 2003 338.9(cid:2)27–dc21 2002190988 10 9 8 7 6 5 4 3 2 1 12 11 10 09 08 07 06 05 04 03 C ONTENTS Introduction ix PART 1 STRATEGIC PREPARATION Chapter 1 Strategic Knowledge and Awareness: New Business Models and Emerging Workplace and Technological Innovations 3 The Internet and Emerging Business Models 3 Blown to bits: the Real Impact of the Internet 9 Analysis of Competitive Forces 14 Analysis of external competitive forces 14 Analysis and selection of internal competitive forces 15 Business Models and Intangible Assets 19 Chapter 2 Matching and Selection: Analysis of Workplace and Technological Innovation 21 Scenario Planning, Development and Analysis 21 Technology, scenarios and strategy 23 The scenario learning process 26 Technology Planning, Analysis and Selection 35 Risk analysis 40 Appendix: Tools for Scenario Learning 46 Chapter 3 Decision: Technology Acquisition 49 Strategy and Decision-Making: Is Strategy Decided Upon, or Does it Emerge? 49 Strategy is designed versus strategy is emergent 50 Strategic Decision-Making 51 Programmed versus non-programmed decisions 51 Individual versus group decision-making 52 Perceptual and judgemental factors affecting decision-making 53 Business Case Analysis 55 A Cost Typology for Information Technology 57 Human Due Diligence 62 Readiness for change assessment 63 v Contents vi PART II IMPLEMENTATION Chapter 4 Knowledge and Awareness 69 Communication for Change 69 Remember national culture 70 How Great Leaders Communicate 71 The importance of communication 71 Communication strategy 76 Dealing with the Past and Emotions 77 Emotional intelligence at work 78 Issues for Implementation Success 80 Education and training 81 Top-down or bottom-up? 83 Prototyping and/or pilot projects? 83 Chapter 5 Segmenting the Internal Market 85 Micro-Level Internal Market Segmentation 87 Innovation analysis: stakeholders’ perceptions 87 Innovator analysis: stakeholders’ innovativeness 89 Macro-Level Internal Market Segmentation 92 Organisational culture 93 Organisational structure 101 Chapter 6 Persuasion, Decision, Commitment 107 Resistance, Compliance, Commitment 108 Commitment to change 108 Resistance to change 109 Stress, Pacing and Celebration 113 Existing Reward and Recognition Systems 116 The Science of Persuasion 119 The principle of reciprocity 121 The principle of social proof 122 The principle of liking 122 The principle of consistency 123 The principle of authority 123 The principle of scarcity 123 The principle of emotion 124 The principle of imitation 124 The principle of perceptual contrast 124 Chapter 7 Roll-Out 125 Technical Training 125 System Conversion 126 Project Change Management 127 The roles and skills of project managers 130 How organisational change fits into project management 133 Some common project problems 136 Contents vii Chapter 8 Confirmation: The Measurement of Change 140 The Importance of Measurement 140 What Should We Measure? 141 A Balanced Measurement System 147 Financial measures: measuring the costs of change 147 Non-financial measures: measuring the effects of organisational change 151 Linking Strategic and Operational Measures 154 When to Measure: Feedback and Measurement 156 Beyond Balance 157 Chapter 9 Beyond Implementation 159 Project Termination or Continuous Improvement? Cutting your Losses 159 Continuous Improvement or Radical Innovation? 161 Trial and error: innovation via experimentation 163 Hubs and clusters: innovate via collaboration 164 Organisational culture: innovate via trust, creativity and communication 169 Beyond the Strategic Implementation of Technology 171 Enter chaos and complexity theory 173 What is complexity theory 173 Simple strategic rules 175 What simple rules are not 180 How to develop simple strategic rules 181 References 183 Index 192 This page intentionally left blank I NTRODUCTION The focus of this book is the implementation of new technology, strategy, business models and other innovations. It takes a strategic look at change management and technology implementation. It crosses the boundaries of change management,technology implementation and organisational strategy. In order to implement new technology successfully we need to distin- guish clearly between implementation and installation. Something is installed when it is technical connected or operational. You can install soft- ware on 100 personal computers,but the software is not implemented until people are using most of its functionality. If the software has been installed, but people have not been trained how to use it,it is not implemented. If the software has been installed, but reward and measurement systems still ‘force’people to use a different method, it is not implemented. If the soft- ware has been installed, but the organisation structure and/or culture influ- ence people not to use certain functions or not to use it at all, it is not implemented. It is the same with non-technical changes. Once a new organ- isational chart has been drawn up, we can say it has been ‘technically installed’,but it certainly has not been implemented. If you are conducting a business process engineering exercise, once the ‘as is’ and ‘should be’ processes have been mapped and drawn up, you can say they have been ‘technically installed’. They are, however, not properly implemented until people start behaving differently and the new ‘should be’process is being followed. Most people mistakenly think of implementation as a difficult, but rela- tively well understood, technical roll-out or installation process. The focus of this book,on the other hand,is to try to persuade you to think of imple- mentation as a complex social process requiring individuals and organisa- tions to innovate and change to utilise fully the capacity available within a technology,a business model or another innovation. Technical roll-out and installation are only a small part of the implementation process and are not the main determinants of success (cf. Abrahamson,2000; Beer and Nohria, 2000; Carlopio,1998; Goleman,Boyatzis and McKee,2001; Piderit,2000). The social side of the implementation process begins when we signal our intentions to change, and start to create sensitivity to – and a sense of urgency for – the need to change. Whether we are changing individuals, ix
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