THE CHANGE PROBLEM #2

How to Solve the Change Problem in Turbulent Times

Change is inevitable and unavoidable in today's world. Organizations face various challenges and opportunities that require them to adapt and transform. But how can they do that effectively and efficiently? How can they identify the goals, the means, and the outcomes of change? How can they engage in a constructive dialogue about change with different stakeholders?

In this article, we will explore the change problem as a matter of moving from one state (A) to another state (A'). We will also discuss how the change problem can be formulated differently depending on the type and role of the organizational unit involved. Finally, we will provide some tips and examples on how to solve the change problem in turbulent times.

The Change Problem as a Matter of Moving from A to A'

The change problem is often expressed, at least initially, as a desire or a need to move from one state (A) to another state (A'). The change problem might be large or small in scope and scale, and it might focus on individuals or groups, on one or more divisions or departments, the entire organization, or one or more aspects of the organization’s environment.

Moving from A to A' is typically accomplished as a result of setting up and achieving three types of goals: transform, reduce, and apply. Transform goals are about defining the desired outcomes of the change effort, such as increasing customer satisfaction, improving quality, or enhancing innovation. Reduce goals are about identifying the changes necessary to produce these outcomes, such as eliminating waste, streamlining processes, or developing new skills. Apply goals are about finding and implementing ways and means of making the required changes, such as using new technologies, adopting new practices, or creating new structures.

In simpler terms, the change problem can be treated as smaller problems having to do with hypothetical dialogue. Hypothetical dialogue is a way of exploring different scenarios and possibilities for change by asking questions such as: What if we do this? What if we don't do that? What if this happens? What if that doesn't happen? By engaging in hypothetical dialogue, we can generate alternative solutions, evaluate their pros and cons, and choose the best option for our situation.

The Change Problem as a How, What, or Why Question

However, not all organizational units have the same perspective on the change problem. Some units are more exposed to environmental turbulence than others, and some units have more influence on strategic decisions than others. Depending on their type and role, organizational units can be classified into three categories: core, buffer, and perimeter.

Core units are responsible for performing the primary activities of the organization, such as producing goods or delivering services. They are usually shielded from environmental turbulence by buffer units. Buffer units are responsible for planning and controlling the performance of core units. They are usually located at upper management levels or staff functions. Perimeter units are responsible for scanning and responding to environmental turbulence. They are usually located at lower management levels or boundary-spanning functions.

Each type of unit tends to formulate the change problem differently. Core units tend to ask how questions, buffer units tend to ask what questions, and perimeter units tend to ask why questions. Let's examine each type of question in more detail.

Change as a "How" Problem

People in core units, buffered as they are from environmental turbulence and with a history of relying on adherence to standardized procedures, typically focus on how questions. How questions are about finding the best way to implement a given change goal or solution. For example:

●?????? How do we get people to be more open, to assume more responsibility, to be more creative?

●?????? How do we introduce self-managed teams in Department W?

●?????? How do we change over from System X to System Y in Division Z?

●?????? How do we move from a mainframe-centered computing environment to one that accommodates and integrates PCs?

●?????? How do we get this organization to be more innovative, competitive, or productive?

●?????? How do we raise more effective barriers to market entry by our competitors?

●?????? How might we more tightly bind our suppliers to us?

●?????? How do we reduce cycle times?

In short, the initial formulation of a change problem is means-centered, with the goal state more or less implied.

Change as a "What" Problem

People in buffer units, responsible for performance through planning, often ask what questions. What questions are about finding the best goal or solution for a given change situation. For example:

●?????? What should we do to increase customer satisfaction?

●?????? What should we do to improve quality?

●?????? What should we do to enhance innovation?

●?????? What should we do to cope with new regulations?

●?????? What should we do to deal with new competitors?

●?????? What should we do to exploit new opportunities?

●?????? What should we do to align our strategy with our vision and values?

●?????? What should we do to leverage our core competencies?

In short, the initial formulation of a change problem is ends-centered, with the means more or less implied.

Change as a "Why" Problem

People in perimeter units, exposed to environmental turbulence and responsible for sensing and responding to it, often ask why questions. Why questions are about finding the best explanation or justification for a given change situation. For example:

●?????? Why are our customers dissatisfied?

●?????? Why is our quality declining?

●?????? Why are we losing our competitive edge?

●?????? Why are we facing new regulations?

●?????? Why are we facing new competitors?

●?????? Why are we missing new opportunities?

●?????? Why are we out of sync with our vision and values?

●?????? Why are we not leveraging our core competencies?

In short, the initial formulation of a change problem is cause-centered, with the ends and the means more or less implied.

How to Solve the Change Problem in Turbulent Times

As we have seen, the change problem can be formulated differently depending on the type and role of the organizational unit involved. However, this does not mean that each unit should solve the change problem in isolation. On the contrary, in turbulent times, everyone must be concerned with everything. This means that core, buffer, and perimeter units should collaborate and communicate with each other to achieve a comprehensive and coherent understanding of the change problem and its solution.

To do so, they should engage in a dialogue that covers all three types of questions: how, what, and why. They should also use hypothetical dialogue to explore different scenarios and possibilities for change. By doing so, they can ensure that their change goals are aligned with their change means and their change outcomes. They can also ensure that their change goals are relevant, realistic, and achievable. They can also ensure that their change means are effective, efficient, and adaptable. They can also ensure that their change outcomes are measurable, observable, and desirable.

Here are some tips and examples on how to solve the change problem in turbulent times using dialogue:

●?????? Start with a clear and shared definition of the change problem. For example: "We need to increase customer satisfaction by 10% in the next quarter."

●?????? Ask why questions to understand the causes and consequences of the change problem. For example: "Why do we need to increase customer satisfaction? Why are our customers dissatisfied? Why does customer satisfaction affect our performance?"

●?????? Ask what questions to identify the goals and solutions for the change problem. For example: "What do we want to achieve by increasing customer satisfaction? What are the possible ways to increase customer satisfaction? What are the pros and cons of each option?"

●?????? Ask how questions to determine the means and methods for implementing the chosen solution. For example: "How do we implement the chosen option? How do we allocate resources and responsibilities? How do we monitor and evaluate progress?"

●?????? Use hypothetical dialogue to test your assumptions and hypotheses about the change problem and its solution. For example: "What if we increase customer satisfaction by improving our product quality? What if we don't improve our product quality? What if our competitors improve their product quality? What if our customers have different expectations about product quality?"

By following these steps, you can solve the change problem in turbulent times more effectively and efficiently. You can also create a culture of dialogue and learning in your organization that fosters continuous improvement and innovation.

Conclusion

The change problem is a matter of moving from one state (A) to another state (A'). To solve it, you need to set up and achieve three types of goals: transform, reduce, and apply. You also need to formulate the change problem differently depending on the type and role of your organizational unit: core, buffer, or perimeter. You also need to engage in a dialogue that covers all three types of questions: how, what, and why. You also need to use hypothetical dialogue to explore different scenarios and possibilities for change. By doing so, you can solve the change problem in turbulent times more successfully.