Diagnosis and Gathering and Interpreting Information

Chapters 7 and 8
Diagnosis and gathering and

interpreting information
1
Organizational diagnosis
... involves gathering, analysing and
interpreting information about how the
organization is functioning.
© PhotoDisc/Getty Images/Joshua Ets-Hokin
© John Hayes (2014), The Theory and Practice of Change Management, 4th ed. 2
Organizational diagnosis
The main steps are:
• Selecting a conceptual model for diagnosis
• Clarifying information requirements
• Gathering information
• Analysis
• Interpretation
The role of diagnostic models
We simplify the real world by developing models that focus
attention on:
 a limited number of key elements
 the way these elements interact with each other
 the outputs produced by these interactions.
We use these models to:

• guide the kind of information that we attend to
• interpret what we see
• decide how to act.
Selecting models for diagnosis
Component versus holistic models
External
environment
Component models look at particular

Mission Leadership
and Organization
strategy culture
aspects of organizational functioning. Management
practices
Work unit Systems

External Structure (policies and
climate
environment procedures)
Motivation
Mission Leadership Organization
and culture
Tasks and
strategy Individual and Individual
individual
Management needs and
roles organizational
practices values
performance
Work unit Systems

Structure climate (policies and
procedures)
Motivation
Tasks and
Individual
individual Individual and
needs and
roles organizational
values
performance
The story of the six blind men encountering an elephant
illustrates one of the problems that can arise when using
component models for diagnosis.
Each one touched a different part
of the elephant’s body.
• The blind man who felt a leg said
the elephant was like a pillar;
• the one who felt its tail said it was
like a rope;
• the one who felt its trunk said it
was like a tree branch;
• the one who felt its ear said it was
like a fan;
• the one who felt its belly said it
was like a wall; and
• the one who felt its tusk said it
was like a spear.
Only looking at specific components may not give a good impression of
what the whole is really like.
Component models
One approach to diagnosis Leadership Organization

Mission
is to start by using and
strategy
culture
component models to
examine how the many Management
practices Systems
(policies and
different aspects of an procedures)
organization are working.

Structure
Work unit
climate
Tasks and
individual Individual
roles needs and
values
Motivation
Component models
... and to combine these Leadership Organization

Mission
assessments to build a ‘big and
strategy
culture
picture’ of how the

organization is functioning Management
practices Systems
(policies and
as a whole. procedures)
Structure
Work unit
climate
Tasks and
individual
roles Individual
needs and
values
Motivation
Holistic models
External
environment
An alternative approach is to Leadership
start by looking at the ‘big Mission

and
Organization
culture
picture’ before drilling down strategy
to explore particular Management

practices
Systems
(policies and
components in more detail. Structure procedures)
Work unit
climate
Tasks and Individual

Motivation
individual needs and
roles values
Individual and
organizational
performance
Holistic models
External
environment
Leadership
An important dynamic of the Mission

and
Organization
culture
strategy
whole system concerns the
nature of the interactions Management
practices
Systems
(policies and
between the component

Structure procedures)
parts. Work unit

climate

Motivation
roles values
Individual and
organizational
performance
Source: Burke and Litwin, 1992: 528
Organizations are open systems
Organization
Inputs transforms inputs Outputs
into outputs
They are:
 embedded within a larger system
 able to avoid entropy
 regulated by feedback.
 subject to equifinality (principle says: “In the system
there are many different ways of achieving the desired state”)
 cyclical in their mode of functioning
 equilibrium seeking
 bounded
Open systems theory
Open systems theory

predicts that changes to
any one of the elements
of an organization’s
system will cause
changes to the other
elements.
Kotter's integrative model of organisational
dynamics Employees &
other tangible
assets
Formal
Social system organisational
arrangements
Dominant
Technology coalition
External
environment
Source: J.P. Kotter, An integrative model of organisational dynamics, in
Porter, Nadler & Cammin, Organizational Assessment, Wiley, 1980
© John Hayes (2014), The Theory and Practice of Change Management, 4th ed.
Organizational effectiveness in the short term
Over the short term effective organizations are those that

have key processes that are characterised by levels of decision
making effectiveness and matter-energy efficiency that help to
ensure that resources are used efficiently.
processes
Alignment and organizational effectiveness
over the medium term
Over the medium term effectiveness is determined by the state
of alignment (quality of fit) between the structural elements.
Examples of poor fit:

 Dominant coalition and task environment
 Employees and technology
 Employees and formal organisation
Adaptability and organizational
effectiveness over the long term
Over the long term, effectiveness is determined by an
organization’s ability to adapt in ways that will maintain
internal and external alignment.
This adaptability is a function of the state of an organisation’s structural

elements.
These can range from highly constraining to very unconstraining.
For example, an organization that has a single complex technology that

is difficult to adapt (so change will require a massive capital investment
in new technology) is more constrained than an organisation that has a
technology that can be used in different ways to produce a variety of
goods and services and which can be modified incrementally over time.
Diagnosing external alignment
Some models focus on diagnosing the quality of an
organisations alignment with the external environment.
A good example is SWOT…
SWOT
SWOT is a diagnostic model for assessing external alignment
and identifying what needs to be changed to improve
organizational effectiveness.
Diagnosing external alignment
Internal factors
Ways to exploit Weaknesses Ways to reduce

Strengths 1 1 1
1 2
2 2
2 3
3 3
3 4
4 4
4
External factors
Opportunities Ways to exploit Threats Ways to reduce

1 1 1 1
2 2 2 2
3 3 3 3
4 4 4 4
Diagnosing internal alignment
Some diagnostic models focus primarily on the quality

of an organization’s internal alignment.
A good example is the Mckinsey 7S model…
The McKinsey 7S model
Structur
e
Strateg Systems
y
Super-
ordinate
goals &
shared values
Skills Style
Staff
Source: Pascale & Athos, 1981, The Art of Japanese Management
The McKinsey 7S model
1. Strategy: Purpose of the business and the way the organization seeks to enhance
its competitive advantage.
2. Structure: Division of activities; integration and coordination mechanisms; nature
of informal organization.
3. Systems: Formal procedures for measurement, reward and resource allocation;
informal routines for communicating, resolving conflicts and so on.
4. Staff: The organization’s human resources, its demographic, educational and
attitudinal characteristics.
5. Style: Typical behavior patterns of key groups, such as managers and other
professionals, and the organization as a whole.
6. Shared values and superordinate goals: Core beliefs and values and how these
influence the organization’s orientation to customers, employees, shareholders
and society at large. Shared values at the centre of the model.
7. Skills: The organization’s core competences and distinctive capabilities.
22
Diagnosing internal and external alignment
Some diagnostic models are more comprehensive and pay

attention to both internal and external alignment.
A good example is the Burke-Litwin causal model of

organizational performance and change.
The Burke-Litwin External
environment
causal model of
organisational Leadership
Mission Organisation
performance and and
strategy
culture
change.
Management
practices Systems
(policies and
• Internal & external alignment Structure procedures)
• Relative weight of causal
Work unit
relationships climate

Motivation
roles values
Individual and
organisational
performance
Transformational External
environment
change
Leadership
transformational elements Mission Organisation
and culture
strategy
Management
practices Systems
(policies and
Structure procedures)
Work unit
climate

Motivation
roles values
Individual and
organisational
performance
Transactional change External
environment
Leadership
Mission Organisation
and culture
strategy
Management
practices Systems
(policies and
transactional elements Structure procedures)
Work unit
climate

Motivation
roles values
Individual and
organisational
performance
Life cycle models
Life cycle models posit that organizations progress
through a series of predictable stages of development
and that each stage brings with it a set of alignment
related issues that have to be managed.
A good example is Greiner’s five phases of growth…
Greiner’s five phases of growth
Growth through
COLLABORATION
Change
Growth through NEXT

EQUILIBRIUM PERIODS COORDINATION CRISIS
Growth through
DELEGATION Crisis of
RED TAPE
Growth through
DIRECTION
Crisis of
CONTROL
Growth through
CREATIVITY
Crisis of
AUTONOMY
REVOLUTIONARY CHANGES
Crisis of
LEADERSHIP
Time
Source: Greiner, 1972, HBR, 50, 38.
Growth through
COLLABORATION
Change
Growth through NEXT

Growth through
RED TAPE
Growth through
DIRECTION
Crisis of
CONTROL
Growth through
CREATIVITY
Crisis of
AUTONOMY
Crisis of
LEADERSHIP
Time
Growth through
COLLABORATION
Change
Growth through NEXT

Growth through
RED TAPE
Growth through
DIRECTION
Crisis of
CONTROL
Growth through
CREATIVITY
Crisis of
AUTONOMY
Crisis of
LEADERSHIP
Time
Growth through
COLLABORATION
Change
Growth through NEXT

Growth through
RED TAPE
Growth through
DIRECTION
Crisis of
CONTROL
Growth through
CREATIVITY
Crisis of
AUTONOMY
Crisis of
LEADERSHIP
Time
Selecting a model for diagnosis
1. Relevance to issues under consideration
2. Identifies elements and cause and effect
relationships that contribute to the problem or
opportunity
3. Indicates which of the above have most weight
4. Highlights aspects of organizational functioning
that the change agent can do something about
Clarifying information requirements
What are the formal

and informal
arrangements for
grouping and
coordinating activities?
How does the

organization go about
matching its resources
with opportunities, and
creating a competitive
advantage?
Clarifying information requirements
What are the formal

and informal
arrangements for Structur
grouping and e
coordinating activities?
Strateg Systems
y
Super-
ordinate
goals &
How does the shared values
organization go about
matching its resources Skills Style
with opportunities, and
creating a competitive Staff
advantage?
Information gathering
Sampling
© PhotoDisc/Getty Images
Analysis
 Qualitative techniques
 Quantitative techniques
© PhotoDisc/Getty Images
Interpretion
Change managers using the McKinsey 7S model can construct a 7S
matrix to aid interpretation
Strategy Structure Systems Staff Style Shared Skills
values
Strategy/ Strategy/ Strategy/ Strategy/ Strategy/ Strategy/
Describe structure systems staff style vales skill
strategy alignment alignment alignment alignment alignment alignment
Structure/ Structure/ Structure/ Structure/ Structure/
Describe systems staff style values skills
structure alignment alignment alignment alignment alignment
Systems/staff Systems/style Systems/ Systems/skills
Describe alignment alignment values alignment
systems alignment
Staff/style Staff/values Staff/skills
Describe alignment alignment alignment
staff
Style/values Style/skills
Describe alignment alignment
style
Values/skills
Describe alignment
shared
values
Describe
skills
Political considerations
Data collection can generate energy around the

activities or behaviours that are being measured.
People concentrate their energy and resources in
those areas where data is collected
GENERATION
EXPECTATIONS
OF ENERGY
THAT DATA
DATA AROUND
WILL AFFECT
COLLECTION ACTIVITY
DESIRED
BEING
OUTCOMES
MEASURED
This can lead to productive or counter-
productive behaviour
Productive
behaviour
Expectations
Data Generation
of impact
collection of energy
on outcomes Counter-
productive
behaviour
The outcome will be determined by people’s
expectations about how the data will be used
Productive
behaviour
Expectations
Data Generation
of impact
collection of energy Counter-
on outcomes
productive
behaviour
Expectation of
how data will be
used
Past experience
Perceived ‘contract’
of change manager’s
with data-collector
use of data
Summary
1. Selection of an appropriate conceptual model for diagnosis
Three characteristics of a good model were discussed:
• relevance to the issues under consideration
• ability to identify critical cause and effect relationships
• ability to focus attention on elements that change managers can
affect.
2. Clarification of information requirements
3. Information gathering
4. Analysis
5. Interpretation
6. Political considerations

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Chapters 7 and 8

Diagnosis and gathering and

© PhotoDisc/Getty Images/Joshua Ets-Hokin

We use these models to:

Component models look at particular

Work unit Systems

Work unit Systems

One approach to diagnosis Leadership Organization

organization are working.

... and to combine these Leadership Organization

picture’ of how the

An alternative approach is to Leadership

start by looking at the ‘big Mission

to explore particular Management

Tasks and Individual

An important dynamic of the Mission

between the component

parts. Work unit

Tasks and Individual

Source: Burke and Litwin, 1992: 528

Open systems theory

Over the short term effective organizations are those that

Examples of poor fit:

This adaptability is a function of the state of an organisation’s structural

For example, an organization that has a single complex technology that

A good example is SWOT…

Ways to exploit Weaknesses Ways to reduce

Opportunities Ways to exploit Threats Ways to reduce

Some diagnostic models focus primarily on the quality

A good example is the Mckinsey 7S model…

Some diagnostic models are more comprehensive and pay

A good example is the Burke-Litwin causal model of

Tasks and Individual

Tasks and Individual

Tasks and Individual

A good example is Greiner’s five phases of growth…

Growth through NEXT

Source: Greiner, 1972, HBR, 50, 38.

Growth through NEXT

Source: Greiner, 1972, HBR, 50, 38.

Growth through NEXT

Source: Greiner, 1972, HBR, 50, 38.

Growth through NEXT

Source: Greiner, 1972, HBR, 50, 38.

What are the formal

How does the

Source: Pascale & Athos, 1981, The Art of Japanese Management

What are the formal

Source: Pascale & Athos, 1981, The Art of Japanese Management

Data collection can generate energy around the

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