1. Chapter 10: Measuring Change

2. Chapter Overview
Measurement & control processes can play a critical role in guiding change and integrating the initiatives of others
Four types of control systems are discussed: Diagnostic / Steering Controls, Belief Systems, Boundary Systems, & Interactive Controls
Different types of controls are needed at different stages of the change process
The use of strategy maps as an alignment tool is explored
Three measurement tools are presented: the Balanced Scorecard, the Risk Exposure Calculator, & the Duration, Integrity, Commitment and Effort (DICE) model
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

3. The Change Path Model Awakening Mobilization Acceleration
Chapter 4
Mobilization
Chapter 5 through 8
Acceleration
Chapter 9
Institutionalization
Chapter 10
Tracking & Measuring the change over time to assess progress, make modifications (as needed) & manage risk
Institutionalizing the change through systems
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

4. Can Control Processes Facilitate Change?
Change agents often complain about how control systems & metrics impede change
BUT when controls and metrics are effectively deployed, they can be powerful aids to change
First understand the impact of existing controls on the change initiative
Then tackle the challenge of aligning controls and measures to facilitate change
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

5. Toolkit Exercise 10.2 – Impact of Measures & Control Processes on Change
Think of a change initiative that you are familiar with:
What measures and controls were used to track the change? Were they congruent with the change vision and strategy? Were they viewed as legitimate by users?
How was information captured and fed back? Did it arrive in a useful and timely form?
Did measures need to evolve and be modified over the life of the change initiative? How was this managed?
Were steps taken to ensure measures would be properly used? Were there risks arising from their use that needed to be managed?
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

6. Toolkit Exercise 10.2 – Impact of Measures & Control Processes on Change
Were goals and milestones established, used to plot process and make midcourse corrections? Were small victories celebrated?
Were the end state measures developed for the change consistent with the vision and strategy? Were they viewed as legitimate?
How were the end state measures fed back to users?
Were steps taken to ensure that end state measures were properly used? Were there risks and potential consequences that needed to be managed?
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

7. Choosing Measures Focus on key factors
Use measures that lead to challenging but achievable goals
Use measures and controls that are perceived as fair & approrpriate
Avoid sending mixed signals
Ensure measures deliver accurate & useful data
Match the precision of the measures with the ability to measure
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

8. The Change Context & The Choice of Measures
Choose Precise, Explicit, Goal Focused Measures
Choose Approximate Measures, Vision Focused, “Learn as You Go” Measures
When Complexity & Ambiguity are:
Low
High
When Time to Completion is:
Short
Long
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

9. Types of Control Levers
Interactive Controls – systems that sense environmental changes crucial to strategic concerns (e.g., market intelligence)
Boundary Systems – systems that set limits of authority & action and determine acceptable & unacceptable behavior
Belief Systems – organizational values & beliefs that underpin decisions
Diagnostic/Steering Controls – traditional control systems, focused on key performance variables
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

10. Strategy & The 4 Levers of Control
Belief Systems
Boundary Systems
Core Values
Risks to be Avoided
Business
Strategy
Strategic Uncertainties
Critical Performance Variables
Interactive Control Systems
Diagnostic Control Systems
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

11. Control System Measures & Stage of the Change
Controls When Planning Change
Controls in Early Stages of Change
Controls in Middle Stages
Controls Towards End of Change Initiative
Inter-Active Controls
Assessing opportunities and threats
Testing viability of existing vision, mission & strategy, given the environment
Affirm that change project is aligned with environmental trends
Assess how to use trends to increase prospects for success
Ongoing monitoring
Confirm that environmental assessment continues to support the change
Obtain feedback re: success of the change relative to environmental factors
On-going environmental scanning
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

12. Control System Measures & Stage of the Change (con’t)
Controls When Planning Change
Controls in Early Stages of Change
Controls in Middle Stages
Controls Towards End of Change Initiative
Boundary System
Limit the change options to those within the boundary conditions
Test the limits of what is acceptable
Go/no go guidance on appropriateness of actions
Reassess risks
Reestablish boundaries, if needed
Test new boundaries, where appropriate
Re-evaluate the boundary limits
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

13. Control System Measures & Stage of the Change (con’t)
Controls When Planning Change
Controls in Early Stages of Change
Controls in Middle Stages
Controls Towards End of Change Initiative
Belief System
Assess congruence with purpose
Congruence assessment
Appeals to beliefs to overcome resistance
Re-evaluation of core values
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

14. Control System Measures & Stage of the Change (con’t)
Controls When Planning Change
Controls in Early Stages of Change
Controls in Middle Stages
Controls Towards End of Change Initiative
Diagnostic and Steering Controls
Assess impact of controls on the change project
Consider what diagnostic controls will need to be developed and/or altered
Develop milestones, diagnostic measures, & steering controls
Develop tactics to alter control systems as needed
Evaluate progress against milestones & measures
Assess whether things are workings as they should
Modify milestones & measures as needed
Determine when project is completed
Confirm changes are working appropriately
Evaluate project & pursue learning on improvements for the next time
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

15. Control System Focus & Stage of the Change
Early Stage of Change
Middle Stages of Change
Late Stages of Change
Focus on the “what” of change
Focus on the “how” of change
Focus on outcomes & the “what next” of change
Strategic Analysis: Goals, Resources, Environment
Measure Progress and Effectiveness of Processes
Strategic Reanalysis: Goals, Resources, Environment
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

16. Toolkit Exercise 10.3 – Application of Simon’s Control Systems Model
Consider a change you are familiar with:
Describe the control processes and measures that were used. What was their impact?
During the earlier stages of the change initiative
During the middle stages of the change initiative
During the latter stages of the change initiative
Were there forbidden topics, such as questioning strategy or core values? Were those limits appropriate and were limits tested?
Were small successes recognized & celebrated along the way?
What changes to measures & control processes would have assisted change?
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

17. Strategy Maps & Change
Visual representation can be used to show how the change vision & strategy intend to link with each other.
They are linked through:
Employee learning and growth targets & goals
System and process targets & goals
Customer (internal/external) targets & goals
Desired financial targets and goals
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

18. Strategy Maps & Change (con’t)
VISION FOR CHANGE & STRATEGY
How Strategy Links the Perspectives
FINANCIAL PERSPECTIVE
CUSTOMER PERSPECTIVE
INTERNAL PROCESS PERSPECTIVE
LEARNING & GROWTH PERSPECTIVE
Human Capital
Informational Capital
Organizational Capital
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

19. A Generic Strategy Map Maximize Organizational Value Financial
Revenue Growth Strategy
Productivity Strategy
Asset Utilization
What do we want to accomplish?
Customer
Add / retain value customer
Increase revenue/customer
Reduce cost/customer
Current
Migrated
New
New Offerings
Solution Focused
Scalability strategies
Internal
Customer
mgmt
leadership
Innovation & comm. supremacy
Internal ops excellence
Effective governance & control
Perception, public relations
How do we plan to accomplish this?
Learning & Growth
Human Capital
(staff competencies)
2. Information Capital (technology infrastructure)
3. Organizational Capital
(climate for action)
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

20. The Balanced Scorecard & Change Management
Financial Shareholders
Customers
Vision & Strategy
Internal Business Process
Employee Learning & Growth
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

21. Generic Balanced Scorecard for Change
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.
Generic Balanced Scorecard for Change
Financial: to succeed financially, how should appear to our shareholders?
Objectives
Measures
Targets
Initiatives 1. 2. 3.
Internal Bus. Processes: To achieve our change vision, what business processes do we need to excel at?
Customers: To achieve our change vision, how should we appear to our customers
Vision & Strategy O M T I 1. 2. 3. O M T I 1. 2. 3.
Learning & Growth: How will we sustain our ability to change & improve?
Objectives
Measures
Targets
Initiatives 1. 2. 3.

22. Toolkit Exercise 10.4 – Aligning Change & Building the Balanced Scorecard
Think about a change you are familiar with:
State the Mission, Vision and Strategy for the change.
Consider the Mission, Vision and Strategy of the organization:
Is the proposed change consistent with these?
If not, what needs to be done to bring them into alignment?
Financial Component of Scorecard: If you succeed with the change vision, how will it appear to the shareholders or those responsible for funding the change? How will you know (objectives & metrics)?
Customer Component of Scorecard: If you succeed with the change, how will it appear to your customers? How will you know (objectives & metrics)?
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

23. Toolkit Exercise 10.4 – Aligning Change & Building the Balanced Scorecard (con’t)
Internal Business Processes Component of Scorecard: If you succeed with the change, how will it appear in your business processes? How will you know (objectives & metrics)?
Employee Learning and Growth Component of Scorecard: If you succeed with the change, how will it appear to your employees and demonstrate itself in their actions? How will you and they know (objectives & metrics)?
Lay out the scorecard you’ve designed for your change and seek feedback from a classmate.
Can you show how the different components are connected to each other by developing a strategy map for the change?
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

24. Factors Leading to Increase Risk
Change Pressure – Risk increases when change leaders feel:
Significant pressures to produce & accomplish the change
There are high levels of ambiguity
The leaders have little experience with change
Change Culture – Risk increases when:
The rewards for risk taking are high
Senior executives resist hearing "bad" news
There is internal competition between units
Information Management – Risk increases when:
the situation is complex and fast changing
gaps in diagnosis exist
if decision-making is decentralized
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

25. Toolkit Exercise 10.5 – Using the Risk Exposure Calculator
Score
Change Pressure
Pressure to Produce
Low High
Level of Ambiguity
Experience with Change
High Low
Out of 15
___
Change Culture
Rewards for Risk-taking
Executives Resist Bad News
Internal Competition
Information Situation
Situation is Complex and Fast-changing
Gaps Exist in Diagnostic Measures
Change Decision-Making Decentralized
Total Score =
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

26. Four Key D.I.C.E. Factors Duration [D] Integrity [I] Commitment [C]
The time until the change program is completed or the amount of time between reviews of milestones
Integrity [I]
Extent to which companies can rely on teams of managers, supervisors & staff to execute change projects successfully
Commitment [C]
Dedication & support from top management [C1] and the employees [C2] to the change initiative
Effort [E]
Additional work that the change initiative demands from employees
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

27. Toolkit Exercise 10.6 – Applying the D.I.C.E. Model
Consider a change initiative that you know is currently be being considered for adoption and apply the DICE model to it.
Duration Score: Score: ___
Score of 1 if formal reviews < 2 months
Score of 2 if formal review every 2 to 4 months
Score of 3 if formal review every 4 to 8 months
Score of 4 if formal review > 8 months
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

28. Toolkit Exercise 10.6 – Applying the D.I.C.E. Model (con’t)
Integrity of Performance Score: 1– Score: __
Score of 1 if team leader has the skills needed and the respect of coworkers, team members have the skills and motivation to complete the project on time and at least 50% of the team members’ time has been assigned to the initiative
Score of 4 if change team and change leader are lacking on all dimensions.
Score of 2 or 3 if the factors lie somewhere in-between
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

29. Toolkit Exercise 10.6 – Applying the D.I.C.E. Model (con’t)
Commitment Score is a 2-part measure…
Senior Management Commitment: Score: __
Score of 1 if words and deeds of senior managers regularly reinforce the need for change
Score of 2 or 3 if senior managers are fairly neutral
Score of 4 if senior managers are perceived as less than supportive
Employee Commitment: 1 –- 2 – Score: ___
Score of 1 if employees are very supportive
Score of 2 if they are willing but not overly eager,
Scores of 3 or 4 as reluctance increases
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

30. Toolkit Exercise 10.4 – Applying the D.I.C.E. Model (con’t)
Level of Additional Employee Effort & Demands over the normal load:
1 –- 2 – Score: ___
Score of 1 if incremental effort < 10%
Score of 2 if incremental effort 10% - 20%
Score of 3 if incremental effort 20%-40%
Score of 4 if additional effort > 40%
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

31. Interpreting D.I.C.E. Change Risk Scores
Calculating The DICE Score:
(Duration Score +
2 x Integrity Score +
2 x Senior Management Commitment Score +
Local-level Commitment Score +
Effort Score)
Interpreting the Score:
Scores between 7 and 14: Win Zone
Scores between 14 and 17: Worry Zone
Scores over 17: Woe Zone
Do the findings help you to think about sources of risk and how to manage risk?
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

32. Summary
Care taken in the selection of measures and control processes help focus energy and effort
They can help enhance the efficiency & effectiveness of the change, provide an early warning system, & provide direction to midcourse corrections
They can help clarify what will be accomplished, what it will take to bring these things to reality & chart progress
The careful selection & use of metrics can be used to enhance the legitimacy & sense of ownership of the change
Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.