Change ......

It’s been a week where I keep meeting people who think that change can occur by redesigning new structure charts, reporting lines and job titles. It never works!

The Figure below looks at the scale and scope of an organisation and, therefore, the possible changes that might take place in an organisation.

The figure displays a sequence of organisational concepts and dynamics that shape and are shaped by each other. It is a “clean sheet” organisational model, indicating the likely sequence in which we might design an organisation from scratch.

Some comments on this model:

1. Purpose: Without clear and constant purpose, nothing else will fall into place.

2. Systems: The notion of systems includes all the elements of the lean/systems thinking model: suppliers, inputs, processes, outputs, and customers.

3. Functions: Function is not synonymous with jobs. Some jobs consist of several functions and some functions require several jobs. Function is a discreet category of tasks: invoicing, planning, housing, etc. Here we should try to describe the system by identifying the sequences of interdependent functions.

4. Capabilities: In order to perform the functions, we need certain capabilities, some of which are equipment driven (e.g. a computer), others that are personnel driven (computer programming, etc.) and some that may be either one or both (e.g. mailing). These are still not yet jobs, but the capabilities around which jobs must be formed.

5. Roles/Jobs: Here we describe the positions, roles, or jobs we create in order to distribute the needed capabilities in a way suitable for performing the functions. Some jobs require several capabilities and some require only one. Some roles are involved in many functions, some in only one.

6. Structure: The purpose, systems, functions, capabilities and jobs must now be integrated and supported. The structure does not precede these but rather is designed specifically to make them work: form follows function. Structure involves:
• Reporting relationships
• Pathways for formal communication
• Divisions, departments, groups
• Policies
• Ongoing teams
• Modes of management and leadership

7. Personnel: Whom will we select to work with us?
• Whom will we recruit or hire?
• Whom will we promote?
• Whom will we fire?

Figure - From Purpose to Personnel: A model for organisational development (from Sholtes, The Leaders Handbook)

What Gets Changed and Why?

When somebody proposes a change in the organisation, we should use the Figure above to locate where in this scheme the proposed change will take place and ask, “Why?” and “Why there?”

• If the purpose changes, then everything else must necessarily change.
• Nothing will improve by changing the structure or the personnel (for instance setting up new teams, finding a new manager, or altering who reports to whom) if the problem lies elsewhere. A new organisational structure will not ordinarily improve a dysfunctional system or an ineffective purpose.

• In the public and private sectors in the West, our knee-jerk reaction to organisational problems is to change the personnel or change the structure. Are these changes or improvements? Why do managers think that working at the level of personnel was what was needed to improve?

• Sometimes bringing in a new manager does bring in new capabilities and provides an occasion for the re-examination of purpose, systems, functions, capabilities, roles and structures—a more systemic view of the organisation. If those who hired and fired managers themselves had a more systemic view of the organisation, they could better decide when and why to replace management personnel and what to look for in new leadership. Unfortunately, all too often there is no systems view. A changeover in management occurs, but the same old problems continue under the new regime. 

Some questions for us all

1. Are we clear about our purpose? Do each of our functions and services have a clear purpose? Do our staff understand the purpose?

2. Where are we with our systems? Are they fit for our purpose?

3. Do our managers have the right capabilities? If not, how will we teach them?

4. Should we work on purpose and systems for 6 months before worrying about PIDS, structure, recruiting people, etc.?

Speak again soon. Enjoy the Tour of Britain as it comes through the county today. For daily updates, discussion, personal opinion, comment or just to connect or keep in touch you can follow me on Twitter at http://twitter.com/#!/drcarltonbrand.

Carlton