Measuring

change :
Designing
effective control
SYSTEMS GROUP – 03:
Linnet Philip – MBA/06/027
Saurodeep Chatterjee – MBA/06/042
Kritika Tandekar – MBA/06/081
Anusha Malothu – MBA/06/083
IntroDuction
Measurements matter.

Measurement and control processes can play a critical role in

guiding change and integrating the initiatives and efforts of
various parties.

Measurement and control systems can help in

 framing the implications of the vision in terms of expected
outcomes.
 monitoring the environment;
 guiding the change, gauge progress and make midcourse
corrections; and
 bringing the change to a successful conclusion.
Using Control Processes to
facilitate change

Steps taken to realign practices at CPS

● Problem identification,
● Diagnose organizations’ structure and systems
● Clients satisfaction with CPS services
Selecting and Deploying
Measures
 Change agents might lose focus if they try to measure
everything simultaneously.

 So, they need to be clear about the stage of the change process
and what dimensions are important to monitor at a particular
stage given the desired end results.
 Measures to Adopt
Measures influence what people pay attention to and
Focus on Key Factors how they act even when they believe those actions
are ill-advised

Use Measures that lead Employees need to believe that they can achieve challenging goals. And to tap
into desired motivations, we need to measure the smaller steps that lead to a
to challenging but larger goal within an individual‘s control.
achievable goals

Use measures and Even reasonable measures may not be acceptable if people feel the measures
controls that are were forced on them. Avoid measures in ways that punish people who take
reasonable actions based on their understanding of the change goals and what is
perceived as Fair and expected of them.
Appropriate
 Aligning measurements and avoiding mixed signals is
Avoid sending tricky because there are always trade-offs. Change leaders
need to address this matter by providing advice on how
Mixed Signals these trade-offs should be handled. If this isn’t done,
change initiatives will flounder.

Ensure Accurate  Keep the pressure at reasonable levels

Data  Avoid excessive consequences for not achieving targets.

Change agents need to make their choices based upon

Match the precision  How quickly they need the information.
of the measure with  How accurate the information needs to be.
 How much it will cost.
the ability to measure
 The Change Context and the Choice of
Measures
Choose more Choose more approximate
Change precise, explicit, measures, focus on vision
context goal-focused and milestones, and learn
measures as you go
WHEN
COMPLEXIT LOW HIGH
Y AND
AMBIGUITY
WHEN TIME
CONTROL SYSTEMS

Robert Simon:
Managers focus too much on traditional diagnostic
control systems developed from management
accounting.
SIMON’s Four Levels of Control System
Control Systems- Stages of CHange
Control Systems- Stages of CHange
Other measurement tools
 STRATEGY MAPS
Visual representation of end state and action plans that will get them there.

1. If the vision is achieved, how will it look from the perspective of financial results
achieved?
2. To accomplish financial results, what initiatives to be taken from customer
perspective?
3. To accomplish customer outcomes, what internal efficiencies are required?
4. To attain internal goals and efficiencies, what must be taken from a learning and
growth perspective?

“POWERFUL ORGANISING AND COMMUNICATION TOOL”

GENERIC STARTEGY MAP
 BALANCED SCORECARD
“A WAY OF TRACKING THE
CRITICAL SUCCESS FACTORS”

4 categories of goals and measures

should be highlighted in a balanced
scorecard, i.e.,
Financial, Company relationship with
customers, key internal processes &
learning and growth.

Generates an aligned perspective on

what needs to be done to produce the
desired strategic outcomes.
RISK EXPOSURE CALCULATOR
a) Under significant pressure to produce
CHANGE b) There is great deal of ambiguity
PRESSURE c) Employees are inexperienced in change

a) Culture pushes risk taking

CHANGE b) Executives resist hearing bad news
CULTURE c) Internal competition

a) Change situation is complex and fast changing

INFORMATION b) Gaps in diagnostic change measures
MANAGEMENT c) Decision making regarding change is
decentralised
 THE DICE MODEL
“PROCESS ORIENTED APPROACH FOR ASSESSING RISKS ASSOCIATED WITH
CHANGE MANAGEMENT”

Overall Dice Score = Duration + (2*Integrity of performance) + (2*Senior Management

Committee) + Local level of commitment + Effort

Research shows the following likelihood of success

7-14 : High likelihood of success
15-17: Worry Zone
17+ : Extremely Risky
> 19 : Highly unlikely to succeed

Duration: How frequently change project is formally reviewed

Integrity: Team leader’s skills and credibility, focus of members of change team
Commitment: Commitment of Senior Management + Employee Commitment
Effort: Level of increased effort that the employees should make
THANK
YOU!