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Chapter 5

Diagnosis for 

Change

 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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Diagnostic Tools

The image of the change

manager has an impact on the

types of tools that may be used. The different images highlight the

range of reasons why tools like

these may be utilized ± they

illustrate the numerous ways

change can be interpreted.

Diagnostic

Tools

Images of 

Managing

Change

Advantages

of diagnostic

tools

Diagnostic

Models:

-Organization

-Components

Readiness for 

Change

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Images of Managing Change

Diagnostic

Tools

Images of 

Managing

Change

Advantages

of diagnostic

tools

Diagnostic

Models:

-Organization

-Components

Readiness for 

Change

Images Diagnostic Tools

Director  Using diagnostic tools to build up your own knowledge base

and confidence about what needs to change by using models

that specify relationships among variables and pinpoint

where change is needed when things are not going well.

Navigator  You will find the diagnostic tools attractive; models are ways

of ³mapping´ the environment they describe.

Caretaker  You will be less convinced of the capacity of the diagnostic

tools to support radical change, but several of the tools (see,e.g., PESTEL and scenario analysis) provide insights into the

trends in the external environment that you will have to take

into account.

Coach You will focus on the diagnostic tools that highlight the goals

being sought and the competencies needed to attain them

Interpreter  You will be attracted to the diagnostic tools that emphasize

images, framing, and cognitive maps

Nurturer  Having an interest in emergent strategy, you may remain

unconvinced as to the value of such diagnostic tools.

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Advantages of Diagnostic Tools

Simplify a complex situation.

Identify priorities for attention.

Highlight interconnectedness of 

various organizational properties (e.g.,

strategy and structure).

Provide a common ³language´ with

which to discuss organizationalcharacteristics.

Provide a guide to the sequence of 

actions to take in a change situation.

Diagnostic

Tools

Images of 

Managing

Change

Advantages

of diagnostic

tools

Diagnostic

Models:

-Organization

-Components

Readiness for 

Change

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Diagnostic Models: Organization

Diagnostic

Tools

Images of 

Managing

Change

Advantages

of diagnostic

tools

Diagnostic

Models:

-Organization

-Components

Readiness for 

Change

Six-box organizational model: ± The key focus here is on six variables ± purpose,

structure, rewards, helpful mechanisms,relationship and leadership. This model is usefulto maintain awareness of all areas for 

consideration even though one variable may beidentified as the main area for attention.

7-S framework: ± The 7-S framework: this focuses on seven key

components that affect organizationaleffectiveness ± structure, systems, style, staff,

skills, strategy and superordinate goals. Theinterconnectedness of these variables is vital tothe success of change.

Star model: ±  An organization is effective when the five

components of organizational design ± strategy,

structure, processes and later capability, rewardsystems and people practices ± are in alignment. 5-5

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Diagnostic Models: Organization

Congruence model: ± The organization is broken down into four components

 ± task, individuals, formal organizational arrangementsand informal organisation. This is influenced by thecontext where the strategy is formulated and the outputis then the performance of the organization.

Burke-Litwin model: ± This model identifies the transformational ± external

environment, mission and strategy, leadership andorganizational culture - and transactional sources of change.

Four frame model:

 ± This offers four frames for the managers toconceptualize how the organization operates. Theseframes are structural, human resource, political andsymbolic frames.

Diagnosis by image: ± This technique allows organizational members to use

images to describe the organizations and this can be

used as a basis for discussion.

Diagnostic

Tools

Images of 

Managing

Change

Advantages

of diagnostic

tools

Diagnostic

Models:

-Organization

-Components

Readiness for 

Change

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Diagnostic Models: Components

PESTEL Framework: ± This analyses the external environment in terms of six factors

 ± political, economic, social, technological, environmental andlegal.

Scenario analysis: ± Creating stories of possible future scenarios that are

considered to be vital to the future of the organization Gap analysis

 ± This is a tool used for reviewing the organization¶s positionbased on where they are and where they want to get to.

Elements of strategy ± These are five elements of strategy that are considered

mutually reinforcing ± arenas, vehicles, differentiators, staging

and lowest costs through scale advantage. Any misalignmentof these signifies the need for change.

Strategic inventory ± This aims to identify the strategic assumptions of managers

and determine their consistency with the businessenvironment. This determines whether the strategy should bea focal point for change.

Diagnostic

Tools

Images of 

Managing

Change

Advantages

of diagnostic

tools

Diagnostic

Models:-Organization

-Components

Readiness for 

Change

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Diagnostic Models: Components

Newsflash exercise: ± This is an exercise that encourages managers to be

very specific and succinct about change and clearer about the intended outcomes.

Cultural web:

 ± This provides a way of mapping the organizationalculture through seven elements ± paradigm, rituals androutines, stories, symbols, control systems, power structures and organizational structure

Structural dilemmas: ± Six possible structural dilemmas that can be

encountered during change are diagnosed so areas

that have been ³traded-off´ during the change processcan be identified

The Boundaryless Organization: ± Success is arguably achieved only if four types of 

organizational boundaries are diagnosed and reduced.These are vertical, horizontal, external andgeographical boundaries.

Diagnostic

Tools

Images of 

Managing

Change

Advantages

of diagnostic

tools

Diagnostic

Models:-Organization

-Components

Readiness for 

Change

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Readiness for Change

 Assessing the organization's readiness tochange can be a mediating variable betweenchange management strategies and theoutcomes of desired strategies.

 A perchance audit of the readiness of anorganization for change can provide anindication of the likely outcome of a changeinitiative at a particular point in time. Someways of doing this include: ± Questionnaires

 ± Stakeholder analysis: This focuses on the positionof stakeholders in the change process and allowsthe manager to be better informed of how toconfront potential issues.

 ± Force-field analysis: This identifies factors that aredriving forces for change as well as restraining

forces.

Diagnostic

Tools

Images of 

Managing

Change

Advantages

of diagnostic

tools

Diagnostic

Models:-Organization

-Components

Readiness for 

Change

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