Improvisational Change:

Transcription

1 Improvisational Change: Managing Change in Uncertain Times Wanda J. Orlikowski Sloan School of Management Massachusetts Institute of Technology Making Digital Business Pay November 2002

2 Outline Why a new approach to managing change? planned vs. improvisational Improvisational change in practice case study: virtual Sloan Implications of a new change approach

3 Why a New Change Approach? In the networked economy, planned change approaches are less effective, given: nature of new technologies: web-based, networked, emerging unprecedented capabilities unknown organizational effects current and future business environment: global and diverse complex and digital uncertain and dynamic [W. Brian Arthur, 1996]

4 Imagine you are milling about in a large casino with the top figures in high-tech the Gates, Gerstners,, and Groves of their industries. Over at one table, a game is starting called Multi-media. At another table is a game called Web Services. In the corner is Electronic Banking. There are many such tables. You sit at one.

5 How much to play? you ask. Three billion the croupier replies. Who will be playing? We won t know until they show up. What are the rules? Those will emerge as the game unfolds. What are my odds of winning? We can t say. Do you still want to play?

6 Planned Change Approach A traditional planned change approach: manages change as a discrete event unfreeze change change refreeze assumes most of the changes can be anticipated and implemented upfront dedicates most of the resources early, to planning, design,

7 Planned Process of Change Expected Stable Use of Technology with new Business Processes Acquisition of Technology Change of Technology and Business Implementation of Technology and new Business Processes Maintenance or Adjustment of Technology and Business Processes

8 Improvisational Change Approach An improvisational change approach may be more useful for managing change given today s environment and today s technologies: manages change as a process not an event assumes changes are ongoing and will be both anticipated and unanticipated distributes resources throughout period of technology use, facilitating adaptation, experimentation, and learning in context

9 Improvisational Process of Change Opportunistic Change Planned Change Emergent Change Planned Change Emergent Change

10 Case Study: Sloan Class of 2001 Decision in late 1997 to shift from traditional to web-based MBA application process Motivation for change: cost savings in publications more efficient data handling enhanced image of technical leadership Partnership with GradAdvantage to create eadmissions process [research with JoAnne Yates and Nils

11 Development of 2001 ecommunity Emergence of ecommunity at chat session Guerilla marketing Link on Sloan admissions site request from students Sloan decision to include link Electronic Newsletter admissions staff and students generate idea students create first newsletter within a week

12 Admissions staff launch web-based application system Admission s staff launch Sloan admissions website Improvisational Process of Students create Sloan Yahoo Club A few students chat on Sloan website and develop idea of launching a club on Yahoo Admissions staff put link to club on Sloan website Students market the Yahoo club Admissions staff encourage students to create an electronic newsletter Students dramatically increase their participation in Yahoo club Change International students increase their participation in club Admissions staff send notification of newsletter to all students

13 Different Types of Change Planned change implementation of online Sloan applications creation of Sloan admissions website Emergent change developing idea to start Yahoo! Club increasing student participation in Yahoo! Club Opportunistic change creating Yahoo! Club for Sloan Class of 2001 adding Yahoo! Club link to Sloan website

14 Lessons for Managing Improvisational Change Planned change may be a limited process of organizational change in uncertain times Unanticipated emergent changes can be both positive as well as negative Positive emergent changes can be amplified through reinforcing opportunistic changes Opportunistic changes can build on emergent changes, if participants: are aware of, and encourage emergent changes

15 Implications of Improvisational Change Need to reframe assumptions and expectations about type and pace of change Need to redefine evaluation criteria and metrics Need to create enabling conditions for emergent and opportunistic changes: distribution of organizational, technical, and financial resources over time ongoing attention to experimentation, learning, and change by all participants

16 When the games themselves are not even fully defined, you cannot plan, control, or optimize. What you can do is adapt. Adaptation, in the proactive sense, means watching for the next wave that is coming, figuring out what shape it will take, and positioning the company to take advantage of it. [W. Brian Arthur, 1996]