Provide an evaluation of two change management philosophies and models, which includes a synthesis of the attached Learning Resource. Include two scholarly, peer-reviewed articles.

RESOURCES Designing for Change MaryAnne M. Gobble As the articles in this special issue illus- trate, successful culture change can re- make a company's fortunes. It's often easy to determine that cultural change is needed. A platform is burning, a market is shrinking, customers are disappearing, the REID pipeline is witheringclearly, something needs to change if the organization is to survive. Sometimes, there's a more positive driver: a radical innovation demands a new business model, a different market, an entirely original approach. Occasionally, a portfolio analysis like the one described by Smith and Sonnenblick in a 2013 RTM article sug- gests that, while the company is ne at the moment, a new outlook is needed to meet coming challenges. Or a futures exercise helps the company see that it needs to prepare for a very different fu- ture from the one it has assumed is coming. Indeed, as Carleton, Cockayne, and Tahvanainen argue in their Play- book for Strategic Foresight and Innovation, developing such a program can help an organization to maintain a future orien- tation and avoid becoming mired in what Christian Crews calls, in his inaugural column in this issue, an ln this space, we offer a series of summaries on key topics, with pointers to important resources, to keep you informed of new developments and help you expand your repertoire of tools and ideas. We welcome your contributions, in the form of suggestions for topics and of column submissions, DOl: 1054371089563 OBXSBOBOOS "ofcial future\" that blinds the organi- zation to unexpected shifts in the envi- ronment. Shell's longstanding scenarios program, described by Wilkinson and Kupers in their HBR article "Living in the Futures," is an example of how an ongoing futures effort can help a com- pany envision, and prepare for, chal- lenges just over the horizon. What's hard is asking the second set of questions. You know you need to be more agile, more innovative, more forward-lookingbut what does that look like? How do you design the orga- nization you need to support the change you need? Plenty of books and articles provide highlevel models for the kinds of organizations that excel. Tushman and O'Reilly's thinking about the of am- bidextrous organizations to balance breakthrough innovation with sustain- ing work; Reis's ideas about how his lean management model, adapted from the startup world, can help big compa- nies be more agile: and Kim and Mauborgne's focus on creating new markets through increased differentia- tion and value innovation all offer keen insight, and solid foundations for driv- ing organizational change. But those high-level views need to be supported by concrete, street-level structures that integrate the various components of the organization and harness the energy for change in a way that matches outputs to strategyand creates value. Creating those structures and determining how they relate to 64 I Research-Technology Management ' MayJune 2015 each other is the role of organizational design. Unfortunately, for many managers, organizational design begins and ends with the \"org chart"that construction of boxes and lines that denes who re- ports to whom, and about what. The org chart is a useful map of the lines of authority and responsibility in a con- ventional hierarchical organization; it emanates from the same source as the assembly line and is designed to ac complish much the same thingto modularize and systematize work for maximum efciency. Of course, much like the assembly line, it assumes that little changes; the line produces the same product over and over again, the organization follows the same processes to manufacture i3 products, respond to its customers, and sustain itself. Designing to support change, or even just to survive in an increasingly dy- namic and complex competitive envi- ronment, means more than moving around the boxes on the org chart. In deed, some of the atter, more collab- orative models that have emerged render the traditional org chart largely meaningless. Rather, the manager faced with designing for change must rethink all of the elements of the organizational structure and how they interact. A structure that is misaligned to strategy, or aligned to an old strategy, will fail. A structure that doesn't balance auton- omy and control in a way that aligns with the company's strategy and values will produce frustration and unhappi- ness, and likely fail. Resources One way to avoid such mismatches is to involve every stakeholder-from the front-line clerk to the C-suite-in the IN PRINT design process. Participatory design, Richard M. Burton, Borge Obel, and Gerardine DeSanctis. 2011. Organizational also known as cooperative design, offers Design: A Step-by-Step Approach. Cambridge, UK: Cambridge University Press. one method for allowing the members Christian Crews. 2015. Killing the official future. Future Praxis. Research-Technology of an organization to structure their Management 58(3): 59-60. work and their workspace. Marvin Jay Galbraith. 2014. Designing Organizations: Strategy, Structure, and Process at Weisbord's Productive Workplaces de- the Business Unit and Enterprise Levels. New York: Jossey-Bass. scribes how "getting everybody improv- Gregory Kesler and Amy Kates. 2010. Leading Organization Design: How to ing the whole system" can produce Make Organization Design Decisions to Drive the Results You Want. New York: more open, agile organizations that, not Josse-Bass. coincidentally, respect the autonomy W. Chan Kim and Renee Mauborgne. 2015. Blue Ocean Strategy: How to Create and dignity of workers. Uncontested Market Space and Make the Competition Irrelevant. Expanded Edi- Nadler and Tushman argue in in tion. Boston, MA: Harvard Business Review Press. Competing by Design that organizational David Nadler and Michael Tushman. 1997. Competing by Design: The Power of design can itself be a source of competi- Organizational Architecture. New York: Oxford University Press. tive advantage, if it works to maximize Eric Ries. 2011. The Lean Startup: How Today's Entrepreneurs Use Continu- a company's capabilities and exploit its ous Innovation to Create Radically Successful Businesses. New York: Crown strengths. Given its power, the authors Business. argue, organizational design should be Dan Smith and Richard Sonnenblick. 2013. From budget-based to strategy-based an integral, and ongoing, process in ev- portfolio management: A six-year case study. Research-Technology Management ery forward-looking organization. 56(5): 45-51. There are a number of frameworks Naomi Stanford. 2007. Guide to Organisation Design: Creating High-Performing available for thinking about organi- and Adaptable Enterprises. An Economist Guide. London, UK: Profile Books. zational structure and design. Jay Michael Tushman and Charles O'Reilly III. 2002. Winning through Innovation: A Galbraith, a leader in the field of orga- Practical Guide to Leading Organizational Change and Renewal. Revised Edition. nizational design, proposes a Star Model Boston, MA: Harvard Business Review Press. that maps the interactions among five Marvin Weisbord. 2012. Productive Workplaces: Dignity, Meaning, and Commu- factors: ity in the 21st Century. 3rd ed. San Francisco, CA: Jossey-Bass. . Strategy, which provides direction ONLINE for the other elements John Beeson. 2014. Five questions every leader should ask about organiza- Structure policies, which determine tional design. Harvard Business Review, January 23. https://hbr.org/2014/01/ where power and authority lie as five-questions-every-leader-should-ask-about-organizational-design well as the degree of specialization Bridgespan Group. 2009. Designing an Effective Organization Structure. Pre- and centralization. sentation, January. http://www.bridgespan.org/getmedia/b1139597-adfe-4dd7- Process definitions, which map how bbb2-ac8c67883020/effective-organizations_-structural-design.pdf.aspx information and decisions flow. Tamara Carleton, William Cockayne, and Antti-Jussi Tahvanainen. 2013. Playbook Reward systems, which are designed for Strategic Foresight and Innovation: A Hands-On Guide for Modeling, De- to motivate people to act in ways signing, and Leading Your Company's Next Radical Innovation. Helsinki, Finland: that further the strategic direction. Tekes. https://www.box.com/s/59y1940p38yOsmvroiid People policies, which govern re- Jay R. Galbraith. n.d. The Star Model. http://www.jaygalbraith.com/images/pdfs/ cruitment, training and other HR StarModel.pdf functions. Mind Tools. 2015. Organization design: Aligning organizational structure with business goals. http://www.mindtools.com/pages/articleewPPM_95.htm The Bridgespan Group, which provides management advice to nonprofits, of- Charles A. O'Reilly and Michael L. Tushman. 2004. The ambidextrous organiza- fers a slightly different framework, tion. Harvard Business Review 82(4). https://hbr.org/2004/04/the-ambidextrous- organization adapted from a Bain & Company tool- kit, that breaks organizational design Lex Sisney. 2012. The 5 classic mistakes in organizational structure: Or, how to into four elements-leadership, deci- design your organization the right way. Organizational Physics, January 9. http:// organizationalphysics.com/2012/01/09/the-5-classic-mistakes-in-organizational- sion making and structure, people, and structure-or-how-to-design-your-organization-the-right-way/ work processes and systems-interacting Angela Wilkinson and Roland Kupers. 2013. Living in the futures. Harvard Busi- around culture in a wheel. The wheel- ness Review 91(5). https://hbr.org/2013/05/living-in-the-futures shaped presentation emphasizes the de- gree to which all of the elements must Resources May-June 2015 | 65fit together to keep the organization organizations, including traditional hi- it can be leveraged to support growth running. erarchical structures, as well as more and innovation. Russell Glass and Sean Lex Sisney, author of Organizational organic variations such as matrix and Callahan attempt to address these issues Physics, lays out three highly abbreviated network structures; each varies in terms and deconstruct the dauntingly com- steps for building an organization design: of the level of complexity, formality, plex notion of harnessing big data for . Identify the core functions needed and inclusiveness it allows and in how business applications. Glass and Callahan to support the strategy. communication occurs. A Mind Tools are pioneers in this field, having de- Define what each function is account- survey article on organization design of- ployed big data strategies to grow Bizo, able for and how it will be measured. fers a useful summary and comparison a business-to-business marketing com- . Place the functions in a structure. of each of these models (as well as a pany, until its acquisition by LinkedIn good introduction to the basic principles for $175 million. Both are now at The result is a structural diagram that of organizational design). LinkedIn; Glass is the head of marketing may look like a traditional org chart, but For those seeking a more systematic products and Callahan is a senior man- has a different intent. Where the org introduction to the discipline of organi- ager of content marketing. The authors chart maps reporting lines between zational design, along with frameworks, give readers an insider's look at how big people, the structural diagram maps tools, and processes for undertaking data can be used by laying out the avail- what functions need to be performed a structural redesign process, there able technologies and their implement and where responsibility for those func- are several options. Burton, Obel, and tation and showing how a newcomer tions lie. The org chart emerges from DeSandis offer a primer on the basics of can deploy big data tools for business the structural diagram. There's a lot organizational design and a step-by-step goals. implied in that high-level process, but process for structural design. Stanford Beginning with a simple idea-that Sisney's very comprehensive blog post offers an overview of the field and an "the companies that most effectively offers a well-explained before-and-after approach structured around five core use big data to gain insight into their example illustrating his points. principles in the Economist's Guide to Or- customers and act on that data will As John Beeson notes in a 2014 HBR ganisation Design. Kesler and Kates offer win"-the authors conclude that mod- article, organizational design is fre- their own "scalable, five-step process" ern businesses should "be data-driven quently the province of consultants, for organization design, directed specific and customer focused." The notion that and every consultant has his or her own cally at business leaders. Any of these will a business should be customer focused model or framework. But, Beeson ar- provide a solid overview of the field along is hardly novel, but historically it has gues, organizational design has evolved with some tools for engaging with it. been difficult and expensive merely to from a "big bang event," most often as- Organizational design may seem collect and store the data needed to sociated with significant downsizing, to mundane, but it is every bit as critical as glean transformative insights-let alone an ongoing process of continual adjust- the big work of culture change. As Lex perform the analyses that lead to these ments to improve efficiency and spur Sisney, author of Organizational Physics, insights. The advent of inexpensive growth. That means every manager has put it in a blog post, "how your organi- large-scale data storage and advanced to deal with, and every manager should zation is designed determines how it analytics capabilities is quickly eroding have a model for approaching it. For performs." How an organization is this barrier, making it possible for busi- Beeson, it doesn't much matter what structured will determine how it re- nesses to implement a data-driven ap- model, as long as it helps you to address sponds to changes in its environment. proach across the organization. Big data five key questions: An organization's structure may nur- analytics can provide new insights in What is the business's value propo- ture or inhibit innovation. Where the the form of more focused information sition and sources of competitive structure runs counter to the strategy, about what customers like and what advantage? people will become frustrated and aban- makes them buy-leading to more- Which activities directly deliver on don change in favor of the path of least informed decisions about, for instance, that value proposition? resistance. what could be optimized in the pipeline. Which structure should we choose Coupled with existing data and re- and how do we overcome its inher- sources, big data can be used to gener- ent downsides? Reviews ate and score new leads for sales, inform What type of leadership and culture The Big Data-Driven Business: How product development, and provide a are required to deliver the value to Use Big Data to Win Customers, hyper-focus on customers-potentially proposition? Beat Competitors, and Boost Profits all in real time. . What organizational practices are Russell Glass and Sean Callahan These benefits are not restricted to required to reinforce the organiza- (Hoboken, NJ: John Wiley & Sons, 2014) business-to-consumer companies; the tional intent? authors provide several examples of Although big data has become a perva- business-to-business applications. For There are, of course, some more-or-less sive buzzword, few businesses fully un- instance, they describe how Docusign, standard structures used by many derstand what exactly big data is or how which provides solutions to manage 66 | Research-Technology Management Resources