5 insights from MIT Sloan School to Implementing I4.0 - Three perspectives to be taken into consideration for a successful organizational change

What did I learn from MIT?

During five days I will share with you the 5 top learnings that may change the way you look at digital transformation in your business - directly from the MIT “Implementing Industry 4.0: Leading Change in Manufacturing and Operations” course for executives to implement large scale technological change in the manufacturing and operations environment. 

I invite you to join the 5 main outcomes - each day one lesson

• Learning 1: Untap the “hidden factory” capacity of your processes

• Learning 2: The system with the faster O-O-D-A loop will prevail

• Learning 3: Three perspectives to be taken into consideration for a successful organizational change
• Learning 4: It is a journey and it is not complex at all
• Learning 5: Straight answer for the most asked questions in transformation journey

Learning 3: Three perspectives to be taken into consideration for a successful organizational change

"Just because you are right, does not mean, I am wrong. You just haven't seen life from my side." “There are a million ways to make spaghetti sauce”.

Transformation initiatives can have many sides and a single thing may look completely different when we see it from different perspective. It is also possible that two business areas giving different answers may be right because they are taking into consideration different aspects of the problem.

 Organizational change management problems typically fall into one of three perspectives:

1.   Strategic design: based upon the future where action comes through planning. Organizations are machines. An organization is a mechanical system crafted to achieve a defined goal. Parts must fit well together and match the demands of the environment.

• Key Concepts: Formal structure (“the boxes”, business processes), Systems (info systems, human resource management systems, etc.)
• Key Processes: Grouping (differentiating), Linking (integration), Aligning (internal: rewarding, selecting, information management, etc.) and “Fit” (external – with environment)
• View of Environment: Opportunities & Threats
• Role of Leader: Organizational “architect,” strategist (Sensemaking & Inventing)
• Stimuli for change: Lack of internal integration, lack of ‘fit’ between organization and environment
• Barriers to change: Inadequate analysis, inadequate information

2.     Political: based upon the present where action comes through power. Organizations are contests. An organization is a social system encompassing diverse, and sometimes contradictory, interests and goals. Competition for resources is expected.

• Key Concepts: Power and influence, social networks, interests, dominant coalition
• Key Processes: Conflict, negotiation, forming (dissolving) relationships
• View of Environment: Stakeholders
• Role of Leader: Building coalitions, identifying and leveraging interests, negotiating and resolving conflicts (Relating)
• Stimuli for change: Shifts in dominant coalition, in power of stakeholders
• Barriers to change: “Entrenched interests”

3.     Cultural – based upon the past where action comes through habit. Organizations are institutions. An organization is a symbolic system of meanings, artifacts, values, and routines. Informal norms and traditions exert a strong influence on behavior.

• Key Concepts: Habits, Identity, traditions, shared mental maps, cultural artifacts, values and assumptions
• Key Processes: Meaning and interpretation, legitimation, rhetoric, setting norms/rules of conduct View of Environment: Social and cultural network, institution
• Role of Leader: Articulating purpose, build & manage culture, symbol of culture (Visioning)
• Stimuli for change: Challenges to basic assumptions, contested interpretations
• Barriers to change: Dominant culture

In your transformation journey you do not need to understand only the processes you are merged with, but also the role of the stakeholders and stimulus and barriers to change. This understanding is critical for guiding successful organizational change.

In the webinar, recorded on February 1, 2017, MIT Sloan Executive Education Professor John Van Maanen provides an overview of each of these three perspectives. A long video, but worth watching.

Stay tuned for tomorrows learning session number 04