Topic 5 – The Management of Change

In the exam, you are expected to:

• Understand that the introduction or development of an information system will result in change, which must be managed. Changes could occur in relation to re-skilling, attitude, organisational structure, employment pattern and conditions, internal procedures.

A well-planned changeover to a new ICT system will result in:

• Acceptance of the system by the staff;
• More efficient work-practices;
• A sense of empowerment by the staff to do their jobs better;
• Improvements in stock control and invoicing;

In other words, staff morale goes up.  Then the organisation will be more productive and effective at its job.  This means greater profit, which means happy accountants and shareholders. 

This kind of success does not make good headlines, and we tend to hear of ICT in the context of computer systems going wrong.  The figures are really quite shocking:

·        80 – 90 % of systems do not fulfil their targets;

·        80 % are late and over budget;

·        40 % fail or are abandoned;

·        Less than 40 % provide proper training and skills development;

·        Less than 25 % properly integrate business and technology objectives;

·        10 – 20 % meet all their criteria for success.

(Source OASIG study 1996)

These failures can be highly expensive tailor-made ICT solutions designed by software houses that totally fail to do the task for which they were intended.  The problems in this case are that:

• There is not good understanding between the analysts and the client organisation.  Often the senior managers are very foggy about what they want the system to do and what it is capable of doing.
• There is too much emphasis on the technology.  The latest hardware may have wonderful specs, but will only work as well as the system installed on it.
• A narrow view of saving money leads human and organisational factors being ignored;
• Users are not involved in the design;
• Users have unrealistic expectations of what the system can do and/or the benefits to the organisation.  Computers are adding machines.  They will not revolutionise the company unless work practices change as well.
• Costs are underestimated.  Tailor-made solutions can cost millions of euros.
• Time taken can also be underestimated.
• The new system can be over-ambitious.  The more complex the system, the more likely it is to fail.

Sometimes the ICT solution was technologically successful, but a failure because the change was badly managed:

• It was imposed from above;
• There was little sense of ownership by the staff;
• It was difficult to use;
• It made people’s jobs harder;
• It removed responsibility.

All these factors make the office have a worse atmosphere.  Staff morale goes down and good people soon are applying out.  Unless something is done about it, the organisation will soon suffer.

Some major ICT projects have proved so disastrous that they have been the centre of a national scandal.  Indeed where systems dealing with emergencies have failed, lives have been needlessly lost.

Many companies are frightened off change by horror stories of ICT failure and opt to do nothing.  This can be a bad strategy if the systems are chaotic!  Many well established companies have been overtaken by newcomers who have adopted ICT systems from the start.  One example of this is Amazon who sell books exclusively over the internet.  Established booksellers like W H Smith have lost many sales to Amazon, and are trading at a loss.

A good ICT solution will improve speed, service, and quality.  However to achieve these aims, the management must consider:

• Reorganising Work flows;
• The organisation of tasks to eliminate repetitive tasks;
• Reduction in the number of steps to complete a task;
• Combination of tasks to reduce the number of stages needed to accomplish the overall function of an organisation.

Individual roles may need to be re-defined.   This can alter the status and responsibility of employees.  Also some may well fear redundancy, all of which can lead to loss of morale.

Good management of change will consider the following factors:

• Responsibility - Individual employees may have greater or less responsibility in the new system. Middle managers may find some of the decisions that they previously made now delegated to a lower level. Without proper planning these changes may result in dissatisfaction from losers of power and increased wage demands from gainers. Management will need to introduce the changes sensitively and ensure that everyone is aware of the new organisational structure.

·        Work Pattern  - Greater telecommuting or part time work may be introduced, as well as Hot-desking where several employees share one desk (at different times, of course!). There may be more flexible work hours or increased job sharing, which may make it more difficult to manage the work force unless proper control and monitoring is planned into the new system.

• Work Practice - The way in which the organisation functions will change.  Some tasks will be combined or automated and the standard procedures used to carry out other functions will be redefined for the new system.  Unless employees are involved in and aware of the changes then the result will be chaos.  Changes in work practice will need management to provide training.
• Work Conditions - The work environment will change.  Management will be responsible for ensuring that health and safety requirement is met in terms of workstations and lighting.  Noise level may be a problem.
• Social Conditions- Employees may suffer from a loss of social interaction which may adversely affect performance - possibly by reducing the opportunity for informal movement of information through the system. Management can build in opportunities for this by having social areas with coffee machines and allowing regular breaks.

Successfully managed changes will be the results of:

• A careful analysis of the work practices.
• Small steps are taken to avoid changing too much at once.
• All users from the board to the shop-floor are involved.  If there are ideas and/or misgivings these can be adopted and changes made;
• The benefits should be apparent but NOT exaggerated.
• Training should be given, not just on the equipment, but also on the new procedures the system will generate.

The implications of change will always have an impact on everyone in the business:

• Redundancies can affect the whole workforce, not just those who leave.
• Teaching and learning of new skills;
• Changes in the structure;
• Changes in employment patterns and conditions;
• Changes in procedures.

In conclusion, well managed change has realistic goals and targets.  It can revolutionise a business and improve the way it serves its customers.  Businesses that change with the times are often those that survive difficult trading conditions, and are much more likely to become market leaders.

Now try the Topic Quiz

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