Change ladder

Before finalizing what the problem really is, it will help if you determine what type of change is needed. Often, when you are first asked to help with a problem there will be a great deal of uncertainty. Since the client is often influenced by subjective needs, the views of other political players and the vagaries of history, the issue offered to you might well consist of a hotch potch of different stories and concerns. Consequently, when the relationship first begins, the client will implicitly be looking for you to help take away some of the surrounding fog. As Schein (1994) suggests:

In reality the manager often does not know what he is looking for and indeed should not be expected to know. All he knows is that something is not working right and he needs some kind of help. An important part of any consultation process, then, must be to help the manager or organization to figure out what the problem is, and only then decide what further kind of help is needed.

The problem is that getting to the core of the issue is difficult when it is surrounded by other factors. However, when dealing with any problem, it is better to focus on one area at a time rather than trying to impose multiple solutions. Trying to take actions in two areas at once can often lead to confusion and, more importantly, make it difficult to measure the success of any change. If a mechanic tries to tune a misfiring car engine by changing the spark plugs and coil at the same time, then it will be difficult to prove which modification resolved the problem. Only by dealing with each change separately can he or she be sure that the cause of the problem is identified and resolved.

Picture a large multinational firm that has a problem with its computer system. Because of the historical changes in organizational structure and IT policy, the system consists of a complex mix of hardware and software. The result is that the IT system is unable to provide adequate support to the customer service teams. Hence, the company commissions a large systems integration contract to upgrade the system.

While developing the project plan, you suggest that it might be appropriate to rebuild the company mission and vision. This will help place greater emphasis on customer service as a core company purpose. However, this changed emphasis means that along with the strategic review, your client now needs to review and upgrade the in-house training procedures in order to enhance customer-influencing skills. Finally, it makes sense to run a series of value development workshops, so that people buy into the need for a greater emphasis on customer service.

In this example, the initial change has been corrupted: now the client is trying to effect a significant change across a broad range of hard and soft systems. This escalation to a range of multiple changes can make it difficult for the client, consultant and end consumer to really focus on delivering an effective change. Although change can take place across different systems, it is important to ensure that attention is paid to each core issue separately.

The vast majority of change actions will fall into one of these categories.

• Asset: The tools, plant or equipment used to deliver a product or service. For the company this is land, building and production equipment; for the racing driver it is the Formula One car; and for the pop musician it is an electric guitar. In the case of a professional services firm or the Rolling Stones, people are the primary asset as they deliver the final product and services.

• Blueprint: This is the method by which a system is managed. For the large organization it is the strategic and tactical plans, processes, quality systems and personnel procedures. For a theatre company it is the script, lighting schedule and backstage directions. For the financial trading group it is the standard internal procedures and the external regulations that control the trading operations.

• Capability: These are the ways and means by which an output is delivered. For an organization they are contained in its people's skills and competencies and its relationship with customers and suppliers. With a football team, the capability is contained within the players' tacit ability, the manager's knowledge and experience, and the capability of the ground staff to maintain a quality pitch. For the racing driver, it is the driver's ability to outperform competitors on the racetrack and the team's ability to maintain the car at top performance.

• Desire: This is the deep-seated motivation that drives people to take action. Within an organization, it is a hierarchical process, from the mission that drives the business goals, down to the personal motivation that stimulates each individual. For the neighbourhood watch organization, it is the need for people to fight against burglary. For the racing driver, it is the single-minded determination to win.

• Existence: This is the core reason why a person, team or organization exists. For the organization it is the real (as opposed to the stated) values and culture. At an international level it is the way that countries will go to war over what might be seen as minor issues. At a micro level, it is the charity that an individual will give to or where they decide to allocate their time.

The five factors are shown in Fig. 6.2 as the change ladder. Change can be delivered in any one of the areas, though the optimum approach is to focus on a single rung. This does not preclude the idea of multiple change activities but it does suggest that where more than one system is being acted upon, it should be treated as a separate change.

However, this does not mean that each action is managed in isolation. Where multiple changes are undertaken, a holistic approach is essential. The impact of one change must be understood in relation to any other action. The end result will be a mapped order of engagements, where each change will contain a further sub-set of engagements. The total map will clearly indicate the level and nature of the relationship and interdependency between each one.

The potential danger, as seen in the systems integration example above, is the tendency to grow and "explode" the initial change. In a commercial environment, it is natural to expand any revenue stream when the opportunity presents itself. The danger is that this can soon go into overkill, where the change becomes messy for you, draining for the client and confusing for the consumer. It is practical and entirely ethical to encourage further system change where appropriate, as long as it is kept within the boundary of commercial and operational sensibility.

This idea of the change ladder is considered in more detail in Chapter 11. It is important to appreciate the complex relationship between the five steps of the ladder. In particular, accept that a change in one area will, in the majority of cases, result in a counter action from one of the other four areas. You will need to be aware of the potential response to any action that you choose to make.