Organisational Change is about orchestrating organizational systems
We discussed in our last blog the shift from efficiency to effectiveness as well as the organizational implications. One result is the ever-quickening pace at which technology advances and how organizations can position themselves to take advantage of that progress at scale to create or adapt new capabilities and services. This is the key word. New technology creates adoption curves. These curves control the pace at which an organization generates future value. How organizations scale will depend on how well they manage these adoption curves. This is organizational management. This is organizational change management. It’s how you break down these “adoption curves” that makes the difference between those who have a competitive pace and those who don’t. As they seek to embrace and deliver adaptivity, creativity and resilience, organizations must be aware of three key aspects in a future fit strategy.
Organization’s ability and willingness to change is key.It doesn’t matter if the change was sparked by technology, process or people. The only way an organization can optimally embrace the change is for all three to acknowledge it in complementary ways. Organizations often fail to recognize the different states of maturity within their systems, which can lead to suboptimal adaptations. Change disequilibrium is a situation in which it is not recognized that certain areas can adopt changes more efficiently and effectively than others. This causes a distortion in ROI, where costs rise faster than the value that is being realized.
One example is that blockchain use cases are on the rise. This means that the reengineering and engagement of employees in those processes fundamentally changes and requires greater knowledge. The algorithmic governance used in distributed ledger technology (DLT), oversees the process. This requires a completely different skill set than what was required to govern it before DLT. This specialized knowledge is not often considered part of “core change.”
There are always ripples and wakes in any organization, regardless of the type of change. Organizations often focus on the source of change and are less proactive than they are about the actual costs.
For example, AI adoption has increased and the lineage of change demands that technology, tasks, processes, and people are acknowledged throughout each step. AI technology augments tasks and can, depending on its reach or ability, take over entire processes. However, the displacement of employees is usually left as a step. This “next” step removes people from being part of the “core changes.”
Don’t focus on the destination but more on the journey. Learning can help you make better decisions in the future. These are called ground truths. Many organizations manage adaption through dependencies. This means that they limit the possibilities to substitutes within their systems, rather than supporting each other. Uncorrelated change results in the negative impact of misinterpretation on requirements, which reduces the effectiveness of the changes. In particular, underestimating information sharing costs can create barriers within and between networks and agents of transformation that lead to a decrease in progress toward outcomes.
Robotic process automation, for example, is placed wherever there are opportunities to automate a task or group of tasks. Automation almost always outweighs the effort that the entire process and people put into maintaining and accommodating this automation in the future. People and process are not considered to be part of “core change” because they put in so much effort.
An organization can be described as a network made up of interdependent systems operating in the same direction and requiring varying degrees of adaptation. Organizational change management aims to maintain equilibrium among these systems. __S.32__ For now, the next blog in this series will discuss the importance of organizational network analysis for strategic change.
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