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Four Strategies for

Managing Change

Fred Nickols

OVERVIEW

This paper presents four basic strategies used to manage change in and to organizations:

_1. Empirical-Rational (E-R)

2. Normative-Reeducative (N-R)
3. Power-Coercive (P-C)
4. Environmental-Adaptive (E-A)_

The first three are summarized versions of “classics” from the work of Ken- neth Benne and Robert Chin^1. The fourth is of the author’s own making. Most successful change efforts will require some mix of the four strategies; rarely will a single strategy suffice. The paper also provides some factors to consider in selecting a strategy or formulating a mix of strategies.

THE EMPIRICAL-RATIONAL STRATEGY

UN D ER L Y I N G AS SU MP T I O N S. People are rational beings and will follow their self-interest – once it is revealed to them. Successful change is based on the communication of information and the proffering of incentives.

For the most part, people are reasonable and they can be reasoned with. In short, they can be persuaded. Value judgments aside, they can also be bought. This is the “carrot” side of carrot-and-stick management. But for reason and incentives to work, there has to be very little in the way of a downside to the change and/or the upside has to greatly outweigh it. If there’s a big downside and it’s not offset by an upside that is big enough and attractive enough to offset the downside and null out any risk involved, peo- ple will indeed be rational; that is, they will oppose or resist the change – overtly or covertly.

SE LE C T I O N FA C T O R S. Change strategy here centers on the balance of in- centives and risk management.

The Empirical-Rational strategy is difficult to deploy when the incentives available are modest. Why risk what we have for an uncertain future that promises to be no more than modestly better than the present? This is es- pecially true when people currently have it pretty good.

(^1) “General Strategies for Effecting Changes in Human Systems” (1969) by Robert Chin and Kenneth D. Benne, Section 1.3 of Chapter 1 in The Planning of Change (2nd Edition), Warren G. Bennis, Kenneth D. Benne and Robert Chin (Editors). Holt, Rine- hart & Winston: New York, NY.

Still, there is an avenue or two open here. Almost all change efforts have long-term as well as short-term goals. To some extent, any long-term change strategy has to incorporate some aspects of the Normative- Reeducative strategy. Enlisting and involving the informal leaders of the or- ganization and keeping them involved is one such avenue. (It should be kept in mind that the formal and informal organizations often overlap in the form of people who lead or influence large or important constituencies and who also hold powerful positions.)

THE POWER-COERCIVE STRATEGY

UN D ER L Y I N G AS SU MP T I O N S. People are basically compliant and will gen- erally do what they are told or can be made to do. Successful change is based on the exercise of authority and the imposition of sanctions.

This can range from the iron hand in the velvet glove to downright brutality

• “My way or the highway.” The basic aim here is to decrease people’s op- tions, not increase them. Surprisingly, in many situations, people actually want and will readily accept a Power-Coercive strategy, particularly when all feel threatened and few know what to do. This strategy is the “stick” side of carrot-and-stick management.

SE LE C T I O N FA C T O R S. Two major factors influencing the choice of the Power-Coercive strategy are time and the seriousness of the threat faced.

If the organization sits astride the fabled “burning platform,” the threat is grave and the time for action is limited. The metaphor of a burning platform is useful but only if all concerned can in fact see that the platform is on fire. This is rarely the case in an organization. Few companies are filled with people who understand the way the business works and fewer people still appreciate the threats it faces or the opportunities it encounters.

It has been argued that change-minded leaders should create a burning plat- form. That idea might have merit in extreme situations but it also entails considerable risk – to the organization, to its people, and to the leader who attempts it.

A mitigating factor here is the culture. If the culture is basically one of a be- nign bureaucracy that is clearly threatened, its members are likely to go along with a sensible program, no matter how high-handed. Conversely, if the culture is laced with autonomy and entrepreneurship but has grown fat, dumb and happy, people will resent and perhaps oppose or resist authori- tarian moves. In this case, key positions might have to be filled with new people.

THE ENVIRONMENTAL-ADAPTIVE STRATEGY

UN D ER L Y I N G AS SU MP T I O N S. People oppose loss and disruption but they adapt readily to new circumstances. Change is based on building a new or- ganization and gradually transferring people from the old one to the new one.

This strategy shifts the burden of change from management and the organi- zation to the people. It exploits their natural adaptive nature and avoids the many complications associated with trying to change people or their culture.

Essentially, this is a strategy of self-cannibalization, that is, you set out to eat your own lunch – before someone else does.

Also known as “the die-on-the-vine” strategy, the Environmental-Adaptive strategy hinges on the commonplace observation that, although people are often quick to oppose change they view as undesirable, they are even quick- er to adapt to new environments. Consequently, instead of trying to trans- form existing organizations, it is often quicker and easier to create a new one and gradually move people from the old one to the new one. Once there, in- stead of being able to oppose change, they are faced with the prospect of adapting to new circumstances, a feat they manage with great facility. The old organization, then, is left to die on the vine.

SE LE C T I O N FA C T O R S. The major consideration here is the extent of the change. The Environmental-Adaptive strategy is best suited for situations where radical, transformative change is called for. For gradual or incremen- tal change, this is not the strategy of choice.

Time frames are not a factor. This strategy can work under short time frames or longer ones. However, under short time frames, a key issue will be that of managing what could be explosive growth in the new organization and, if it is not adequately seeded with new folks, the rapid influx of people from the old culture can infuse the new organization with the old culture.

Another factor to consider is the availability of suitable people to “seed” the new organization and jump-start its culture. Some can come from other or- ganizations but some can come from the old organization, too. In the old culture can be found rebels, misfits and other non-conformists who are pre- cisely what is needed in the new culture. They must be chosen with care, however, because of the politics and the possibility that some will bear grudges against some members of the old culture.

7. DEP EN D EN C Y. This is a classic double-edged sword. If the organi- zation is dependent on its people, its ability to command and de- mand is limited. On the other hand, if the people are dependent on the organization, their ability to oppose is limited. (Mutual depend- ency almost always signals a requirement to negotiate.)

SUMMARY

The preceding discussion of strategies for managing change is summarized in Figure 1 below.

Figure 1 – Four Strategies Summarized

A key point to be made here is that people are all those things indicated above; they are logical, they are social, they are compliant and they adapt to new and changing circumstances. Again, this means using a mix of strategies instead of relying on just one.

RELATED READINGS

This paper draws on a section of “Change Management 101: A Primer” (see the link below). There are additional articles related to change management on my web site. Links are provided below.

 Change Management: A Selected Bibliography

 Change Management 101: A Primer

 Change Management in Hard Times

 Embracing Resistance to Change

CONTACT THE AUTHOR

Fred Nickols can be contacted by e-mail. Other articles of his can be found on his web site.