Table Of Content

Patterns of Organization Change By LARRY E. GREINER LARRY E. GREINER, who is Assistant Professor of Busi- ness Administration, Harvard Business School, has developed cases and taught in the area of organizational behavior. He formerly taught human relations at the University of Kansas. REPRINTED FROM HARVARD BUSINESS REVIEW MAY-JUNE l967 CRS Archives Document CRS Center, College Station, TX http://crscenter.tamu.edu Harvard MAY/JUNE 1967 Business Review VOL. 45, NO. 3 Edward C. Bursk: EDITOR JOHN F. CHAPMAN, Executive Editor VIRGINIA B. FALES, Managing Editor DAVID W. EWING, Associate Editor G. SCOTT HUTCHISON, Associate Editor TIMOTHY B. BLODGETT, Associate Editor T. K. WORTHINGTON, General Manager ERNEST D. FRAWLEY, Controller RAY RING, Art Director Editorial, Reprint, Advertising Departments Soldiers Field, Boston, Massachusetts, 02163 Kirkland 7-9800 Direct all subscription mail and correspon- dence to Harvard Business Review, Subscrip- 4 NEXT REVOLUTION IN RETAILING tion Services Department, 108 Tenth Street, Alton F. Doody and William R. Davidson Des Moines, Iowa 50305. 22 COMPARATIVE MARKETING – A NEW-OLD AID Annual index is published in the November- David Carson December issue. Contents are indexed in the Business Periodicals Index and Bulletin of the 61 CREATIVE COMPETITION Public Affairs information Service. George Champion 68 NEW VENTURE MANAGEMENT IN A LARGE COMPANY BUSINESS REVIEW BOARD Russell W. Peterson GEORGE P. BAKER, DEAN, Ex Officio 77 THE CORPORATE OMBUDSMAN ROBERT W. AUSTIN, Chairman RAYMOND A. BAUER Isidore Silver JOHN E. BISHOP 88 SO YOU’RE GOING TO HAVE A PLANNING DEPARTMENT! EDWARD C. BURSK ROBERT D. BUZZELL Richard F. Vancil CORDON DONALDSON 97 CLUES FOR SUCCESS IN THE PRESIDENT’S JOB BERTRAND FOX STEPHEN A GREYSER Joseph C. Bailey RALPH W. HIDY 105 SYSTEMS APPROACH TO MARKETING M. THOMAS KENNEDY WINFELD G. KNOFF Lee Adler ELI SHAPIRO 119 PATTERNS OF ORGNAIZATION CHANGE PHILIP THURSTON FRANK L. TUCKER Larry E. Greiner ARTHUR N. TURNER 131 TWO-WAY CONTRACTING RICHARD F. VANCIL Warren M. Lowry HARVARD BUSINESS REVIEW 138 BANKING AND THE ANTITRUST LAWS William T. Lifland May-June, 1967, Vol. 45, No. 3 Published bimonthly by the Graduate 145 HOW TO BUILD A MARKETING INFORMATION SYSTEM School of Business Administration, Harvard Donald F. Cox and Robert E. Good Uni-versity. Printed in U.S.A. 155 THE COMING SCRAMBLE FOR EXECUTIVE TALENT Second-class postage paid at Boston, Arch Patton Mass., and at additional mailing offices. 172 MEETING THE COMPETITION OF GIANTS © 1967 by the President and Fellows of Alfred Gross Har-vard College. CRS Archives Document CRS Center, College Station, TX http://crscenter.tamu.edu How does a "successful" change differ from an "unsuccessful" one? Patterns of Organization Change By Larry E. Greiner of the market has remained the same, our sales have increased 15% over the past year. In order to handle this increased business, we have added Today many top managers are attempting to a new marketing vice president and may have to introduce sweeping and basic changes in the double our sales force in the next two years." behavior and practices of the supervisors and the subordinates throughout their organizations. Such an optimistic statement frequently be- Whereas only a few years ago the target of or- lies an unbounding faith in a beneficent envi- ganization change was limited to a small work ronment. Perhaps this philosophy was adequate group or a single department, especially at lower in less competitive times, when small patch- levels, the focus is now converging on the or- work changes, such as replacing a manager here ganization as a whole, reaching out to include and there, were sufficient to maintain profitabil- many divisions and levels at once, and even the ity. But now the environments around organi- top managers themselves. There is a critical zation's are changing rapidly and are challenge need at this time to understand better this coming managements to become far more alert and plex process, especially in terms of which ap- inventive than they ever were before. proaches lead to successful changes and which actions fail to achieve the desired results. Management Awakening In recent years more and more top manage- Revolutionary Process ments have begun to realize that fragmented changes are seldom effective in stemming the The shifting emphasis from small- to large- underlying tides of stagnation and complacency scale organization change represents a signifi- that can subtly creep into a profitable and grow- cant departure from past managerial thinking. ing organization. While rigid and uncreative For many years, change was regarded more as attitudes are slow to develop, they are also slow an evolutionary than a revolutionary process. to disappear, even in the face of frequent per- The evolutionary assumption reflected the view sonnel changes. Most often these signs of decay that change is a product of one minor adjust- can be recognized in managerial behavior that ment after another, fueled by time and subtle (a) is oriented more to the past than to the fu- environmental forces largely outside the direct ture, (b) recognizes the obligations of ritual control of management. This relatively passive more than the challenges of current problems. philosophy of managing change is typically ex- and (c) owes allegiance more to department pressed in words like these: goals than to overall company objectives. "Our company is continuing to benefit from a Management's recent awakening to these dan- dynamically expanding market. While our share ger signs has been stimulated largely by the rap- AUTHOR’S NOTE: This article is part of a larger study Louis B. Barnes and D. Paul Leitch, which is supported by the on organizational development, involving my colleagues Division of Research, Harvard Business School. 119 CRS Archives Document CRS Center, College Station, TX http://crscenter.tamu.edu 120 HER May-June 1967 idly changing tempo and quality of its environ- ning throughout their findings. I shall report ment. Consider: some of these similarities, under two headings: 1. Common approaches being used to initiate • Computer technology has narrowed the deci- organization change. osion time span. • Mass communication has heightened public 2. Reported results — what happened in a awareness of consumer products. number of cases of actual organization change. • New management knowledge and techniques have come into being. I shall begin with the approaches, and then attempt to place them within the perspective of • Technological discoveries have multiplied. what has happened when these approaches were • New world markets have opened up. applied. As we shall see, only a few of the • Social drives for equality have intensified. approaches used tend to facilitate successful • Governmental demands and regulations have change, but even here we find that each is aid- increased. ed by unplanned forces preceding and following its use. Finally, I shall conclude with some As a result, many organizations are currently tentative interpretations as to what I think being challenged to shift, or even reverse, gears is actually taking place when an organization in order to survive, let alone prosper. change occurs. A number of top managements have come around to adopting a revolutionary attitude toward change, in order to bridge the gap between Common Approaches a dynamic environment and a stagnant organ- In looking at the various major approaches ization. They feel that they can no longer being used to introduce organization change, sit back and condone organizational self-indul- one is immediately struck by their position along gence, waiting for time to heal all wounds. So, a "power distribution" continuum. At one ex- through a number of means, revolutionary at- treme are those which rely on unilateral author- tempts are now being made to transform their ity. More toward the middle of the continuum organizations rapidly by altering the behavior are the shared approaches. Finally, at the op- and attitudes of their line and staff personnel posite extreme are the delegated approaches. at all levels of management. While each or- As we shall see later, the shared approaches ganization obviously varies in its approach, the tend to be emphasized in the more successful overarching goal seems to be the same: to get organization changes. Just why this is so is an everyone psychologically redirected toward solv- important question we will consider in the con- ing the problems and challenges of today's busi- cluding section. For now, though, let us gain ness environment. Here, for example, is how a clearer picture of the various approaches as one company president describes his current they appear most frequently in the literature of goal for change: organization change. "I've got to get this organization moving, and soon. Many of our managers act as if we were Unilateral Action still selling the products that used to be our bread At this extreme on the power distribution and butter. We're in a different business now, and I'm not sure that they realize it. Somehow we've continuum, the organization change is imple- got to start recognizing our problems, and then mented through an emphasis on the authority be- of a man's hierarchical position in the company. come more competent in solving them. This ap- Here, the definition and solution to the prob- plies to everyone here, including me and the jani- lem at hand tend to be specified by the upper tor. I'm starting with a massive reorganization echelons and directed downward through for- which I hope will get us pulling together instead mal and impersonal control mechanisms. The of in fifty separate directions." use of unilateral authority to introduce organization change appears in three forms. Striking Similarities Although there still are not many studies of By Decree. This is probably the most com- organization change, the number is growing; monly used approach, having its roots in centu- and a survey of them shows that it is already ries of practice within military and government possible to detect some striking similarities run- bureaucracies and taking its authority from the CRS Archives Document CRS Center, College Station, TX http://crscenter.tamu.edu 1 formal position of the person introducing the sonal, and located outside the individual. At change. It is essentially a "one-way" announce- the same time, however, because of greater con- ment that is directed downward to the lower cern for the effects of structure on people, they levels in the organization. The spirit of the can probably be characterized as more personal, communication reads something like "today we subtle, and less directive than either the decree are this way — tomorrow we must be that way." or replacement approaches. In its concrete form it may appear as a mem- orandum, lecture, policy statement, or verbal Sharing of Power command. The general nature of the decree More toward the middle of the power distri- approach is impersonal, formal, and task-orient- bution continuum, as noted earlier, are the ed. It assumes that people are highly rational shared approaches, where authority is still pres- and best motivated by authoritative directions. ent and used, yet there is also interaction and Its expectation is that people will comply in sharing of power. This approach to change is their outward behavior and that this compli- utilized in two forms. ance will lead to more effective results. By Group Decision Making. Here the prob- By Replacement. Often resorted to when the lems still tend to be denned unilaterally from decree approach fails, this involves the replace- above, but lower-level groups are usually left, ment of key persons. It is based on the assump- tree to develop alternative solutions and to tion that organization problems tend to reside choose among them. The main assumption in a few strategically located individuals, and tends to be that individuals develop more com- that replacing these people will bring about mitment to action when they have a voice in sweeping and basic changes. As in the decree the decisions that affect them. The net result form, this change is usually initiated at the top is that power is shared between bosses and sub- and directed downward by a high authority fig- ordinates, though there is a division of labor ure. At the same time, however, it tends to be between those who define the problems and somewhat more personal, since particular indi- those who develop the solutions. viduals are singled out for replacement. Never- theless, it retains much of the formality and By Group Problem Solving. This form em- explicit concern for task accomplishment that phasizes both the definition and the solution of is common to the decree approach. Similarly, problems within the context of group discus- it holds no false optimism about the ability of sion. Here power is shared throughout the de- individuals to change their own behavior with- cision process, but, unlike group decision mak- out clear outside direction. ing, there is an added opportunity for lower- level subordinates to define the problem. The By Structure. This old and familiar change assumption underlying this approach not only, approach is currently receiving much reeval- that people gain greater commitment from be- uation by behavioral scientists. In its earlier ing exposed to a wider decision-making role form, it involved a highly rational approach to but also that they have significant knowledge the design of formal organization and to the to contribute to the definition of the problem. layout of technology. The basic assumption here was that people behaved in close agreement Delegated Authority with the structure and technology governing At the other extreme from unilateral author- them. However, it tended to have serious draw- ity are found the delegated approaches, where backs, since what seemed logical on paper was almost complete responsibility for defining and not necessarily logical for human goals. acting on problems is turned over to the subordi- Recently attempts have been made to alter nates. These also appear in two forms. the organizational structure in line with what is becoming known about both the logics and By Case Discussion. This method focuses nonlogics of human behavior, such as engineer- more on the acquisition of knowledge and skills ing the job to fit the man, on the one hand, or than on the solution of specific problems at adjusting formal authority to match informal hand. An authority figure, usually a teacher or authority, on the other hand. These attempts, boss, uses his power only to guide a general dis- however, still rely heavily on mechanisms for cussion of information describing a problem sit- change that tend to be relatively formal, imper- uation, such as a case or a report of research CRS Archives Document CRS Center, College Station, TX http://crscenter.tamu.edu 122 HER May-June 1967 sions of organization change that might stand out against the background of characteristics results. The "teacher" refrains from imposing unique to one company, we conducted a survey his own analysis or solutions on the group. In- of 18 studies of organization change. Specifi- stead, he encourages individual members to ar- cally, we were looking for the existence of domi- rive at their own insights, and they are left to nant patterns of similarity and/or difference use them as they see fit. The implicit assump- running across all of these studies. As we went tion here is that individuals, through the medi- along, relevant information was written down um of discussion about concrete situations, will and compared with the other studies in regard develop general problem-solving skills to aid to (a) the conditions leading up to an attempted them in carrying out subsequent individual and change, (b) the manner in which the change organization changes. was introduced, (c) the critical blocks and/or By T-Group Sessions. These sessions, once facilitators encountered during implementation, conducted mainly in outside courses for repre- and (d) the more lasting results which appeared sentatives of many different organizations, are over a period of time. increasingly being used inside individual com- The survey findings show some intriguing panies for effecting change. Usually, they are similarities and differences between those stud- confined to top management, with the hope that ies reporting "successful" change patterns and beneficial "spill-over" will result for the rest of those disclosing "less successful" changes — i.e., the organization. The primary emphasis of the failure to achieve the desired results. The suc- T-group tends to be on increasing an individ- cessful changes generally appear as those which: ual's self-awareness and sensitivity to group so- * Spread throughput the organization to include cial processes. Compared to the previously dis- and affect many people. cussed approaches, the T-group places much * Produce positive changes in line and staff at- less emphasis on the discussion and solution of titudes. task-related problems. Instead, the data for discussion are typically the interpersonal actions * Prompt people to behave more effectively in of individuals in the group; no specific task is solving problems and in relating to others. assigned to the group. * Result in improved organization performance. The basic assumption underlying this approach is that exposure to a structureless situ- Significantly, the less successful changes fall ation will release unconscious emotional ener- short on all of these dimensions. gies within individuals which, in turn, will 'Success' Patterns lead to self-analysis, insight, and behavioral change. The authority figure in the group, usu- Using the category breakdown just cited as ally a professional trainer, avoids asserting his the baseline for "success," the survey reveals own authority in structuring the group. In- some very distinct patterns in the evolution of stead, he often attempts to become an accepted change. In all, eight major patterns are identi- and influential member of the group. Thus, in fiable in five studies reporting successful change, comparison to the other approaches, much more and six other success studies show quite similar authority is turned over to the group, from characteristics, although the information con- which position it is expected to chart its own tained in each is somewhat less complete. (See course of change in an atmosphere of great in- the Appendix for studies included in the sur- formality and highly personal exchanges. vey.) Consider: 1. The organization, and especially top management, is under considerabie external and in- Reported Results ternal pressure for improvement long before an explicit organization change is contemplated. Per- As we have seen, each of the major approach- formance and/or morale are low. Top manage- es, as well as the various forms within them, ment seems to be groping for a solution to its rests on certain assumptions about what should problems. happen when it is applied to initiate change. 2. A new man known for his ability to intro- Now let us step back and consider what actually duce improvements, enters the organization, does happen — before, during, and after a par- either ticular approach is introduced. as the official heap of the organization, or as a To discover whether there are certain dimen- CRS Archives Document CRS Center, College Station, TX http://crscenter.tamu.edu Organization Change consultant who deals directly with the head of the (2) Another pattern of inconsistency is found organization. in the sequence of change steps. In the successful change patterns, we observe some degree of logical 3. An initial act of the new man is to encour- consistency between steps, as each seems to make, age a reexamination of past practices and current possible the next. But in the less successful chang- problems within the organization. es, there are wide and seemingly illogical gaps in 4. The head of the organization and his im- sequence. One study, for instance, described a mediate subordinates assume a direct and highly big jump from the reaction to outside pressure to involved role in conducting this reexamination. the installation of an unskilled newcomer who im- 5. The new man, with top management sup- mediately attempted large-scale changes. In an- port, engages several levels of the organization in other case, the company lacked the presence of a collaborative, fact-finding, problem-solving discus- newcomer to provide new methods and ideas to sions to identify and diagnose current organization the organization. A third failed to achieve the problems. cooperation and involvement of top management. And a fourth missed the step of obtaining early 6. The new man provides others with new successes while experimenting with new change ideas and methods for developing solutions to prob- methods. lems, again at many levels of the organization. 7. The solutions and decisions are developed, (3) A final pattern of inconsistency is evident tested, and found creditable for solving problems in the major approaches used to introduce change. on a small scale before an attempt is made to In the successful cases, it seems fairly clear that widen the scope of change to larger problems and shared approaches are used — i.e., authority fig- the entire organization. ures seek the participation of subordinates in joint decision making. In the less successful attempts, 8. The change effort spreads with each suc- however, the approaches used lie closer to the ex- cess experience, and as management support grows, treme ends of the power distribution continuum. it is gradually absorbed permanently into the or- Thus, in five less successful change studies, a uni- ganization's way of life. lateral approach (decree, replacement, structural) was used, while in two other studies a delegated The likely significance of these similarities approach (data discussion, T-group) was applied. becomes more apparent when we consider the None of the less successful change studies report- patterns found in the less successful organiza- ed the use of a shared approach. tion changes. Let us briefly make this contrast before speculating further about why the suc- How can we use this lack of consistency in cessful changes seem to unfold as they do. the sequence of change steps and this absence of shared power to explain the less successful 'Failure' Forms change attempts? In the next section, I shall Apart from their common "failure" to achieve examine in greater depth the successful chang- the desired results, the most striking overall es, which, unlike the less successful ones, are characteristic of seven less successful change marked by a high degree of consistency and the studies is a singular lack of consistency — not use of shared power. My intent here will be just between studies, but within studies. Where not only to develop a tentative explanation of each of the successful changes follows a similar the more successful changes, but in so doing to and highly consistent route of one step build- explain the less successful attempts within the ing on another, the less successful changes are same framework. much less orderly (see Appendix for a list of these studies). There are three interesting patterns of in- Power Redistribution consistency : Keeping in mind that the survey evidence on (1) The less successful changes begin from a which both the successful and the less suc- variety of starting points. This is in contrast to cessful patterns are based is quite limited, I the successful changes, which begin from a com- would like to propose a tentative explanatory mon point — i.e., strong pressure both externally scheme for viewing the change process as a and internally. Only one less successful change, whole, and also for considering specific mana- for example, began with outside pressure on the gerial action steps within this overall process. organization; another originated with the hiring of The framework for this scheme hinges on two a consultant; and a third started with the presence of internal pressure, but without outside pressure. key notions: CRS Archives Document CRS Center, College Station, TX http://crscenter.tamu.edu HBR May-June 1967 Let us now consider how each of these phases EXHIBIT I. DYNAMICS OF SUCCESSFUL and their specific elements make themselves evi- ORGANIZATION CHANGE dent in the patterns of successful change, as well as how their absence contributes to the less successful changes. I. Pressure & Arousal This initial stage indicates a need to shake, the power structure at its very foundation. Un- til the ground under the top managers begins to shift, it seems unlikely that they will be suf- 1. Successful change depends basically on a redistribution of power within the structure or an organization. (By power, I mean the locus of formal authority and influence which typically is top management. By redistribution, I mean a signif- cant alteration in the traditional practices that the power structure uses in making decisions. I propose that this redistribution move toward the greater use of shared power.) 2. Power redistribution occurs through a de- velopmental process of change. (This implies that organization change is not a black to white affair ficiently aroused to see the need for change, occurring overnight through a single causal mech- both in themselves and in the rest of the or- anism. Rather, as we shall see, it involves a num- ganization. ber of phases, each containing specific elements The success patterns suggest that strong pres- and multiple causes that provoke a needed reac- sures in areas of top management responsibility tion from the power structure, which, in turn, sets are likely to provoke the greatest concern for the stage for the next phase in the process.) organization change. These pressures seem to Using the survey evidence from the success- come from two broad sources: (1) serious en- ful patterns, I have divided the change process vironmental factor , such as lower sale, stock into six phases, each of them broken down in- holder discontent, or competitor breakthroughs; to the particular stimulus and reaction which and (2) internal events, such as a union strike, appear critical for moving the power structure low productivity, high costs, or interdepartmen- from one phase to another. EXHIBIT I repre- tal conflict. These pressures fall into responsi- sents an abstract view of these two key notions bility areas that top managers can readily see as in operation. CRS Archives Document CRS Center, College Station, TX http://crscenter.tamu.edu Organization Change reflecting on their own capability. An excerpt who make decisions affecting the entire organi- from one successful change study shows how zation; and his being respected is likely to give this pressure and arousal process began: added weight to his initial comments about the organization. " 'Pressure' was the common expression used at Thus we find the newcomer in an ideal posi- all levels. Urgent telephone calls, telegrams, let- tion to reorient the power structure to its own ters and memoranda were being received by the internal problems. This occurs in the success- plant from central headquarters. . . . Faced with ful changes as the newcomer encourages the an increase in directives from above and cognizant top managers to reexamine their past practices of Plant Y's low performance position, the manager knew that he was, as he put it, 'on the and current problems. The effect appears to be spot.' "1 one of causing the power structure to suspend, at least temporarily, its traditional habit of pre- As this example points out, it is probably sig- suming beforehand where the "real" problems, nificant when both environmental and internal reside. Otherwise, we would not find top man- pressures exist simultaneously. When only one agement undertaking the third stage — identi- is present, or when the two are offsetting (e.g., fying and diagnosing organization problems. We high profits despite low morale), it is easier for can see how an outsider was accomplishing this top management to excuse the pressure as only reorientation in the following comment by the temporary or inconsequential. However, when plant manager in one successful change study: both are present at once, it is easier to see that "I didn't like what the consultant told me about the organization is not performing effectively. our problems being inside the organization instead The presence of severe pressure is not so of outside. But he was an outsider, supposedly an clearly evident in the less successful changes. expert at this sort of thing. So maybe he could In one case, there was internal pressure for more see our problems better than we could. I asked effective working relations between top manage- him what we ought to do, and he said that we ment and lower levels; yet the company was do- should begin to identify our specific problems." 2 ing reasonably well from a profit standpoint. In another case, there was environmental pressure Three of the less successful changes missed for a centralized purchasing system, but little this step. Two of the three attempted large- pressure from within for such a change. scale changes without the assistance of an outsider, while the third relied on an outsider who II. Intervention & Reorientation lacked the necessary expertise for reorienting top management. While strong pressure may arouse the power structure, this does not provide automatic as- III. Diagnosis & Recognition surance that top management will see its problems or take the correct action to solve them. Here, we find the power structure, from top Quite likely, top management, when under se- to bottom, as well as the newcomer, joining vere pressure, may be inclined to rationalize its in to assemble information and collaborate in problems by blaming them on a group other seeking the location and causes of problems. than itself, such as "that lousy union" or "that This process begins at the top, then moves gradu- meddling government." ally down through the organizational hierarchy. As a result, we find a second stage in the suc- Most often, this occurs in meetings attended by cessful change patterns — namely, interven- people from various organization levels. tion by an outsider. Important here seems to A shared approach to power and change be the combination of the fact that the new- makes itself evident during this stage. Through comer enters at the top of the organization and consulting with subordinates on the nature of the fact that he is respected for his skills at im- problems, the top managers are seen as indicat- proving organization practices. Being a new- ing a willingness to involve others in the deci- comer probably allows him to make a relatively sion-making process. Discussion topics, which objective appraisal of the organization; entering formerly may have been regarded as taboo, are at the top gives him ready access to those people now treated as legitimate areas for further in- 1 Robert H. Guest, Organization Change: The Effect of 2 From my unpublished doctoral dissertation, Organi- Successful Leadership (Homewood, Illinois, The Dorsey zation and Development (Harvard Business School, June Press, Inc., 1962), p. 18. 1965). CRS Archives Document CRS Center, College Station, TX http://crscenter.tamu.edu HBR May-June 1967 quiry. We see the diagnosis and recognition ing solutions is based on a shared power con- process taking place in this example from one cept. Here the emphasis is placed on the use of successful change study: collaboration and participation in developing group solutions to the problems identified in "The manager's role in the first few months, as Phase III. he saw it, was to ask questions and to find out The potency of this model for obtaining both what ideas for improvement would emerge from the group as a whole. The process of information quality decisions and high commitment to ac- gathering took several forms, the principal one be- tion has been demonstrated repeatedly in re- ing face-to-face conversations between the manager search. In three successful changes, the model and his subordinates, supervisors on the lower was introduced as a part of the Phase III diag- levels, hourly workers, and union representatives. nosis sessions, with the newcomer either pre- Ideas were then listed for the agenda of weekly senting it through his informal comments or planning sessions." 3 subtly conveying it through his own guiding actions as the attention of the group turned to The significance of this step seems to go be- the search for a solution. In two other studies, yond the possible intellectual benefits derived formal training programs were used to intro- from a thorough diagnosis of organization prob- duce and to help implement the model. For all lems. This is due to the fact that in front of successful changes, the outcome is essentially every subordinate there is evidence that (a) top the same — a large number of people collabo- management is willing to change, (b) important rate to invent solutions that are of their own problems are being acknowledged and faced up making and which have their own endorsement. to, and (c) ideas from lower levels are being It is significant that none of the less success- valued by upper levels. ful changes reach this fourth stage. Instead, the The less successful changes all seem to avoid seeds of failure, sown in the previous phases, this step. For example, on the one hand, those grow into instances of serious resistance to top managements that took a unilateral ap- change. As a result, top management in such proach seemed to presume ahead of time that cases falls back, gives up, or regroups for an- they knew what the real problems were and other effort. Because these studies conclude how to fix them. On the other hand, those that their reports at this stage, we are not able to took a delegated approach tended to abdicate determine the final outcome of the less success- responsibility by turning over authority to lower ful change attempts. levels in such a nondirective way that subordinates seemed to question the sincerity and real V. Experimentation & Search interest of top management. Each of the successful change studies reports a fifth stage — that of "reality testing" before IV. Invention & Commitment large-scale changes are introduced. In this phase Once problems are recognized, it is another not only the validity of specific decisions made matterr to develop effective solutions and to ob- in Phase IV, but also the underlying model for tain full commitment for implementing them. making these decisions (shared power), falls Traditional practices and solutions within an or- under careful organization scrutiny. Instead of ganization often maintain a hold that is diffi- making only big decisions at the top, a num- cult to shed. The temptation is always there, ber of small decisions are implemented at all lev- especially for the power structure, to apply old els of the organization. Further, these decisions solutions to new problems. Thus, a fourth tend to be regarded more as experiments than phase — the invention of new and unique solu- as final, irreversible decisions. People at all or- tions which have high commitment from the ganization levels seem to be searching for sup- power structure — seems to be necessary. porting evidence in their environment — e.g., The successful changes disclose widespread dollar savings or higher motivation — before and intensive searches for creative solutions, judging the relative merits of their actions. This with the newcomer again playing an active role. concern is reflected in the comment of a con- In each instance the newcomer involves the en- sultant involved in one successful change: tire management in learning and practicing new forms of behavior which seek to tap and release "As might be expected, there was something less the creative resources of many people. Again, than a smooth, unresisted, uncomplicated transi- as in the previous phase, the method for obtain- 3 Robert H. Guest, op. cit., p. 50. CRS Archives Document CRS Center, College Station, TX http://crscenter.tamu.edu