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Tag Archives: Leadership Development

The Burke-Litwin Change Model: Today’s Most Influential Model on Organizational Change

13 Mar

Organizations are continually searching for innovative ways of enhancing competitiveness. This is brought about by evolving external factors such as changing demographics, globalization, and technology. Because of changing dynamics, it has required managers to rapidly rethink and retool their organizational management strategies.

Coming up with the appropriate strategies calls for an increasing need for organizational diagnosis in developing and maintaining a competitive advantage. Researchers believe that in conducting organizational diagnosis, organizational effectiveness must be viewed from a systems perspective using a multidimensional approach in assessing the factors affecting enterprise performance management.

At this point wherein the role of organizational climate in business performance has become significant, there is a need for a business model that is most influential. To date, the Burke-Litwin Change Model is the best known and most influential model suitable when it comes to organizational climate.

A Quick Look at Burke-Litwin Change Model

The Burke-Litwin Change Model is seen as a conceptual framework that can best describe the relationships between different features of the organization, as well as its context and effectiveness.

According to Burke and Litwin (1992), Change Management models are not meant to be prescriptive. They are meant to provide a means to diagnose, plan, and manage change. Using the Burke-Litwin Change Model will provide organizations an effective diagnostic tool to improve overall organizational performance. It is a useful model for understanding the organizational change process.

The Burke-Litwin Change Model, as a change management tool, assumes 12 organizational elements that determine a change within an organization.

The Burke-Litwin Change Model 12 Drivers

The 12 key drivers of the Burke-Litwin Change Model interact with and affect each other. The change in the 12 key drivers brings about a series of changes in the structure, practices, and the system of the organization.

The 12 key drivers have been organized based on their specific roles within the organization.

Input.

  1. External Environment.  The External Environment is the external influences important fo organizational changes. These are the economy, customer behavior, competition, politics, and legislation.

Throughput: Transformational Drivers. Transformational Drivers are those that make up the fundamental structure of an organization. It relates to the organization as a whole. There are 3 Transformational Drivers.

  1. Mission and Strategy Development
  2. Leadership Development
  3. Corporate Culture

The 3 key drivers have over-riding importance of dealing with a change that is intended to share up “the way things are done around here.”

Throughput: Transactional Drivers

Transactional drivers are drivers that are more easily changed, but rarely have the same kind of impact on organization-wide performance. This concerns daily activities that take place in organizations and their mutual cohesion. There are 7 Transactional Drivers.

  1. Structure
  2. Systems
  3. Management Practices
  4. Work Climate
  5. Task and Individual Skills
  6. Individual Needs and Values
  7. Motivation.

The Transactional Drivers can affect performance.  However, performance can only be long-lasting if these key drivers are aligned. The 7 key drivers are critical in their role of supporting the change process.

 Output

Individual and Organizational Performance is the 12th key driver. It is the outcome of the change.

The 12th Key Driver: The Individual and Organizational Performance

The only thing that is constant is change. As output changes, so does the input and the factors of change. Individual and Organizational Performance is the measure of the effectiveness of the change. It measures the performance levels of both the individual employee and on the departmental and organizational level.

Individual and Organizational Performance can be measured on the basis of turnover, productivity, quality requirements, efficiency, and customer satisfaction. This is the key driver that impacts on the external environment.

Interested in gaining more understanding of the Burke-Litwin Change Model? You can learn more and download an editable PowerPoint about the Burke-Litwin Change Model here on the Flevy documents marketplace.

Are you a management consultant?

You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.

Business Process Reengineering (BPR) Implementation Guidelines: Preventing the Risk of Failure

11 Mar

Business Process Reengineering (BPR) can be a great success but it can also be a great failure.

After months or years of careful redesign, organizations can achieve dramatic improvements in individual processes.  However, a paradoxical outcome has become almost a commonplace. Organizations suddenly find themselves watching the overall results decline. Process costs were reduced by 34% yet operating income stalls.  Claims process time cut by 44% yet profits drop. It seems that organizations are squandering management attention and other resources on projects that look like winners but fail to produce bottom-line results for the business unit as a whole.

Reengineering can actually deliver revolutionary process improvements and many organizations have been undertaking major reengineering effort.   However, like any major change program, a reengineering project can produce lasting results only if it is designed and implemented the right way.

Implementing Business Process Reengineering

BPR implementation is a series of waves that can wash over the organization for years, leaving a system for continuous improvement. It must be undertaken with a clean slate approach to process design. Only then can companies avoid a classic reengineering pitfall of focusing on fixing the status quo.

Implementation of the Business Process Reengineering requires that new infrastructures are planned and built to support this Business Transformation. The full commitment of senior executives on its redesign and implementation must also be present to ensure the success of the reengineering project.

It is essential that organizations have a good understanding of the success factors, as well as root causes of failure.  While reengineering projects can succeed, it can also fail.  There are 4 practices that are the most damaging.

The 4 Root Causes of Failure

The root causes of failure remain a challenge for organizations.  These are 4 causes they must watch out for to achieve a successful BPR implementation.

  1.  Assign average performers. This is the tendency of organizations to enlist average performers from headquarters. This often happens because of an existing belief that assigning top performers will affect the business unit’s performance.
  2. Measure only the plan. Measuring only the plan happens when there is a lack of a comprehensive measurement system.  The organization also fails to track whether the implementation is succeeding or failing.
  3. Settle for the status quo. Settling for the status quo is a very deadly decision or reaction. When this happens, aspirations are never translated into reality. There exists the inability to think outside existing skill levels, organizational structure, or system constraints. Further contributing to this is the existence of political infighting on incentives and information technology during implementation. When this exists, often the decision is to maintain a status quo that could be debilitating to the organization.
  4. Overlook communication. During BPR implementation, there is a tendency to overlook communication.  Probably due to a lack of proper understanding, the level of communication is underestimated during implementation. Often, communication is done using memos, speeches, or PR videos.  While these may have its purpose, at times these methods can be limiting.

BPR implementation requires a small group format where employees can give feedback and air their concerns.  This may be time-consuming but it is important. In fact, organizations must create a comprehensive communication program that uses a variety of methods of communication.  When this is undertaken, the chances of succeeding during the BPR implementation is high.

BPR implementation is most crucial.  Hence, organizations must have a keen eye, as well as strong leadership development and commitment, to pursue it despite its challenges. BPR implementation is a series of waves that can wash over the organization for years. Hence, a system of continuous improvement must be in place.

Interested in gaining more understanding of Business Process Reengineering (BPR) Implementation Guidelines? You can learn more and download an editable PowerPoint about Business Process Reengineering (BPR) Implementation Guidelines here on the Flevy documents marketplace.

Are you a management consultant?

You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.

4 Leadership Mindsets Critical to Succeed in the New Economy

10 Feb

Technology, Internet, growth, and globalization have metamorphosed the way we work, play, and live.  They have even changed the fundamental laws of economics.  We are living in an economy that is quite different from the old manufacturing-based economy of the 1980s.  Fewer people are now employed in the manufacturing sector, who are anxious about the prospects of being replaced by machines soon.

The “New Economy” is a term economists started using in the 1990s to describe new, high-tech, high-growth industries that have been the driving force of economic growth since that period.  The new economy is also heralded as the Digital Economy, the Knowledge Economy, the Data Economy, or the eCommerce Economy.  Top technology enterprises—including Google, Facebook and Apple—have outpaced traditional firms around the globe by taking advantage of the new economy.

Leadership Development in this age of Digital Economy is a key challenge for most organizations.  More and more organizations, today, are revisiting what they are about and the meaning of leadership for them.  It’s not about one person or even those residing at the top anymore.

MIT Sloan Management Review conducted a study of 4,000 executives from 120 geographies around the world to understand what defines a great leader in this changing world.  The study revealed striking results with most executives believed that their leaders lacked the mindset needed to produce the strategic changes essential for leading in the Digital Economy.  Enterprise-level transformation is what majority of leaders feared to embark on.

Mindsets are established set of attitudes held by someone that shape how a person interprets and responds to experiences.  A mindset arises out of a person’s view of the world or philosophy of life.  To know about the Digital Economy leadership mindsets (i.e. leadership mindsets critical to survive in this new economy), the MIT Sloan Management Review’s global study identifies 4 critical mindsets—based on in-depth interviews from executives worldwide and detailed analysis of data:

  1. The Producer
  2. The Investor
  3. The Connector
  4. The Explorer

Let’s define these first 2 leadership mindsets.

The Producer

Leaders with a producer mindset evaluate each of their customer touch points painstakingly.  These leaders exhibit a passion for producing customer value.  Producers concentrate on analytics, digital know-how, implementation, results, and customer satisfaction.  They focus on analytics to fast-track creativity.  The resulting innovation helps them tackle shifting customer preferences and enhance customer experiences.  The Producers strive to create all the customer journeys enjoyable.

The Investor

The leaders with an investor mindset make people appreciate the higher purpose they serve by their work.  They constantly struggle to instill motivation and teamwork among their teams in order to achieve their overall organizational goals.  The leaders with an investor mindset are concerned about the communities that surround them.  They look after the well-being and constant advancement of their employees, and devote their efforts to improve value for their customers.

Fostering these types of mindsets is critical to building the right Organizational Culture for an organization to be successful in the Digital Economy.

Interested in learning more about the leadership mindsets required to win in the new economy?  You can download an editable PowerPoint on Leadership Mindsets Critical to Succeed in the Digital Economy here on the Flevy documents marketplace.

Are you a Management Consultant?

You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.


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