System Thinking and Change Management Evaluation - Term Paper Example

Introduction Why does change meet with such resistance even when the benefits seem obvious? This is not merely a matter of rhetoric for the business executive impatient to propel a career forward through systems and projects. 3 kinds of obstacles commonly impede progress: 1. Burdens of past success and old knowledge, neither of which is relevant anymore in new circumstances. We prefer to adhere to history when it has beneficial foundations. 2. The fear of losing power and relevance? Will our jobs and privileges remain in a new disposition? Will be pronounced as obsolescent, and receive the dreaded pink slips? 3. Social barriers to continuing and adult education. Are sabbaticals demotions or marginalization in reality? Will be look foolish in class? Can we learn from new kids on the block? Change which ignores these three realities is subject to fall before their bulwarks. Totalitarian systems have never been successful in free societies, and it is near extinction in the modern business entity as well. Computer nerds, project management experts, and crusaders of all hues have no options to excelling in communicating their passions to seemingly unmoved colleagues. The qualitative skill of persuading others does not excite everyone, but there is hope in this difficult situation as well. This document proposes a triad of approaches to improve the ease with which new systems can be introduced in the most bureaucratic of organizations. It considers the human aspects of managing new projects, and ways of shepherding new ways of doing things through the difficult terrain of skepticism and obduracy. The material which follows is based on real life professional experience in using the ISO 14000 series to improve safety and ecological conservation standards in an international business of toxic chemical production and marketing. The process of ISO registration and certification is complex, and has to be managed on a project basis. It fosters sweeping changes in organizations, and calls for entirely new perspectives on the part of professional teams. It makes organizations transparent, thus increasing the open accountability of top executives and of technical teams. The system has global success stories and strong opposition in equal measures, but there is no doubt about its social and public relevance in protecting all stake holders from serious product liabilities. Apple Computers and Toyota are amongst the most celebrated corporations of the world, which attribute important achievements to the ISO system. The Power of Example Problems which we may feel are imagined, become real when you try systems and change yourself. You have to discover your own creativity, resilience, and resolve (Barger, & Kirby, 1995). These thoughts are left in the crucible of personal experience when we reflect on a project to introduce the ISO system in a multi-national company with multiple production sites. The initial proposal for such a project led to howls of protest! A solution seemed to be that registration and certification could proceed with just two sites. The group headquarters and one affiliate in a high risk situation were chosen for the pilot phase of the project. Managers in other sites heaved a collective sigh of relief! The ISO process proved to be far more difficult than was perceived at first. A major issue was the enormous amount of documentation which had to be created. It was exceedingly difficult to get people from all parts of the chosen sites to set aside time for the interminable meetings, which are essential for understanding the ISO process completely. However, the greatest obstacle faced related to the sea changes which had to be made in systems of work and in operating procedures. It was almost as though an entirely new corporation had to be created! There were serious issues of conflict with operations serving sites which had been left out of the pilot phase of the project. All these seemingly intractable problems were eventually overcome. The benefits of ISO certification were substantial and immediate. It is possible to question today in retrospect, to question whether the business could have continued at all in the pre-ISO format! It is clear that the investments in time, money, and human efforts, which were needed to break new ground with ISO, were more than worthwhile-they were life saving in more than one sense! The general learning from this individual experience relates to the power of example by leadership, when a new and invasive system, or a complex project, has to be implemented. Credibility will suffer if top leadership is not actively involved: preaching without self-practice will not work when painful changes are in order! It is equally true that the benefits of new systems and projects are easier to foresee than the problems and risks of hands-on implementation. It is important for senior managers to be part of the ground breaking phase because the insights gained about how difficult the change can be, leads the expansion phase and providing adequate resources in future. The pilot phase of a new system also throws up at least one champion from the ranks. The ISO system for example, requires the nomination of a site coordinator to work with a consultant in scheduling all the requirements for registration and certification. Site managers tend to see this as a clerical kind of role, and use the occasion to deploy an individual who is under-employed in the pre-project phase. However, the development of a new system becomes a career opportunity for the nominated person, and he or she becomes a powerful spokesperson for change within the lower levels of a large organization. The power of example is a double edged sword, because if the system fails, or if there are the common project delays, then senior managers who have thrown their hats in to the ring, lose face. However, this works for the good, because it forces diligent review of the proposed system well before the organization makes any irreversible commitment to change. We can conclude that a new system or a major project has a better chance of eventual acceptance and success, if the leadership of the organization opts to submit to the change first, and if it participates actively in the process of development, well before asking junior colleagues to commit themselves. Similarly, new system and project development can throw up promoters from within the engine rooms of corporations, as they act as coordinators during the pilot phase. It follows that attempts to introduce new systems across the entire organization in a single stroke, are likely to prove disruptive, and are more likely to be resisted, perhaps to the point of failure. The Demonstration Path Benchmarking helps to sell the benefits of new systems in organizations. Apple and Toyota were amongst early adopters of the ISO 14000 series, and have achieved famous business results from the system. Both these companies attribute substantial economic benefits to the ISO 14000 series, though the early objectives of enrollment belonged to the environmental conservation area. Much of the objection to launching ISO initiatives relate to being able to afford the expenses. Therefore, the cost savings at Apple Computers from recycling, and Toyota’s remarkable productivity gains, were important arguments to sell ISO certification in a chemical industry. That did not mean that the safety and ecology imperatives were relegated to the background, but it did imply that the money spent on maintaining an ISO certification could be recovered through new business. This financial incentive spurred many other sites to follow the lead in getting certified, because it became clear that many prestigious customers in Europe and Japan began to insist on ISO as a pre-condition for doing business. There may be cases which require to be truly pioneering, by being the first to adopt a new system, or to venture in to an unprecedented project. However, in most cases there will be some organizations which have tested the system, or which have executed a similar project before, and they can be used as demonstrations. This is especially easy if a benchmark can be found from a non-competing business. There is a lesson here about selecting early adopters for a new system or for a first project. It is important for every developer to select widely respected clients for early breakthroughs. A system or a project can be sold if the credentials of existing customers are unimpeachable. Apple Computers and Toyota were key citations when a chemical company had to be persuaded to try for ISO 14001 series certification. The fact that the group company sought certification was also an inspiring guide for affiliate companies. This aspect can run counter to systems development, because much of the early work has to be done on a trial basis. The best organizations will not like to act as guinea pigs! The answer may lie in marketing development for new systems, quite apart from their technical development. It is certainly true that the International Standards Organization follows this kind of approach, making concerted efforts to promote its products well after the documentation and auditors become available. All such development has to be on a global basis, because world-wide standardization is the new ‘mantra’ (Ohmae, 1991). Appropriateness of Technology Success stories from Japan share a common element of blending international technology with local customs and needs. They have not, for example, adopted English fully, even after a string of achievements in electronics, and heavy industries. Their business management practices also diverge from conventional western models. One can learn from this example that the technologies of systems and project management need to be adapted locally, for ease of implementation. This is also borne out in the ISO example. The International Standards Organization never imposes any complete template on a registrant. The system of accreditation leaves room for each entity to adapt guidelines to the specifics of their own situation. Any system which has to be adopted in entirety is likely to run in to obstacles of relevance and feasibility. Systems and projects are not developed in a vacuum. The best developments retain local creativity and innovation (Nonaka, & Takeuchi, 1995). Ethics and Corporate Responsibility in Systems Development Transparency and effective communications determine the course and influence of ethics, corporate responsibility, and resource optimization in decisions related to systems development and new projects. This is the core strength of the ISO system, because it joins all levels of the hierarchy in a common forum of discussions. Simultaneously, detailed recording of decision-making and its independent audit lays a durable weave of accountability. System failures and project delays are possible even with an ISO safeguard, because the method is limited by our abilities to foresee future developments. However, the documentation and audit mechanism ensures progressive compliance with agreed standards. Conclusions The best ideas in the world of organized business can run up against the most formidable opposition from within any entity. Sponsors of systems and projects start by thinking that they have communication problems with colleagues who are not able to see their points of view. However, it can be that sponsors perceive the benefits of changes more clearly than the developmental difficulties. Hence, new systems should start on small scale, and always include the sponsor at the outset. Benchmarking with a reputed organization acts as a powerful incentive for people to collaborate in new system induction and project execution, but the technology should be flexible and address the concerns of all stake holders. Sponsors should have the wisdom to choose what should be copied, and areas where change has to be resisted. Finally, system development and project implementation should be transparent and audited, so that everyone has a chance to participate productively. References Barger, N. J. & Kirby, L. K. 1995 The Challenge of Change in Organizations, Davies-Black Publishing, Palo Alto, California. Nonaka, I & Takeuchi, H. 1995 The Knowledge Creating Company, Oxford University Press, New York, Oxford. Ohmae, K. 1991. Managing in a Borderless World, Strategy, Montgomery, C. A. & Porter, M. E (eds.) Harvard Business Review Books Read More