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Change Management - Frigerio, Appunti di Lingua Inglese

Appunti completi di tutte le lezioni del corso Change Management - Frigerio

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2023/2024

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Lesson 1 - 11/11
INTRODUCTION
SOME DEFINITIONS
First definition from Wikipedia: “
Change Management is structured approach to
shifting individuals, teams, and organizations from a current state to a desired future
state”
-Structured approach means that it can be planned, defined and known; it can be
developed in phases and goals
-Current means actual
-Future can be difficult and very strong or easy to achieve; it’s a new state, that can
be achieved in the short run or in the long run
In this definition, change can affect individuals —> we call change management, when
we need to change the individuals
The fact that the change can affect different levels of analysis (individuals, teams,
organizations) on the same time, can create difficulties in understanding the change.
People usually don’t like the change, they are usually against the change because we
want to dream, to be innovate but our mindset creates lot of obstacles, because
change is uncertainty. We will not know exactly what will be the change. That’s why
here in the definition it’s written “desired future state”, since it’s something that we
want to, but we are not sure that the future state will be as the planned one
(especially for big transformations of change).
Second definition from Wikipedia: “
Change Management is an organizational process
aimed at empowering employees to accept and embrace change in the current
business environment
This is another definition that says that change management is something that occurs
organizationally speaking, but it’s a process that means that is something that occurs
with different activities.
With this definition, we point the emphasis on the acceptance phase of employees,
who need to embrace change (embrace meaning first of all understand why change
occurs and accept change). Employees are going to lowering the barriers to change,
because they understand the desired future state is better than the current one, even
if there’s uncertainty. It’s important that employees make this shifting, because it’s
not natural, it’s not something that occurs naturally.
People need to be part of the change.
Change Management is related to Project Management:
-The goal of Project Management is to plan. It’s the methodology and methods for
planning, for managing time, resources, communication and for creating something
new
-Change Management is used for adopting
IS CHANGE A NATURAL PROCESS IN ORGANIZATION?
There are 2 big theories of looking change:
1. Change is a natural process, even we don’t have any new project before. It’s
natural because individuals, teams and organizations change by definition
(because our brain is made for changing). Since organizations change by definition,
the change is embedded and continuous.
2. Change occurs just when it’s a big impact that we call radical change, and
we need to plan it because it’s not embedded and continuous.
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Lesson 1 - 11/

INTRODUCTION

SOME DEFINITIONS

First definition from Wikipedia: “ Change Management is structured approach to

shifting individuals, teams, and organizations from a current state to a desired future

state”

- Structured approach means that it can be planned, defined and known; it can be

developed in phases and goals

- Current means actual

- Future can be difficult and very strong or easy to achieve; it’s a new state, that can

be achieved in the short run or in the long run In this definition, change can affect individuals —> we call change management, when we need to change the individuals The fact that the change can affect different levels of analysis (individuals, teams, organizations) on the same time, can create difficulties in understanding the change. People usually don’t like the change, they are usually against the change because we want to dream, to be innovate but our mindset creates lot of obstacles, because change is uncertainty. We will not know exactly what will be the change. That’s why here in the definition it’s written “desired future state”, since it’s something that we want to, but we are not sure that the future state will be as the planned one (especially for big transformations of change).

Second definition from Wikipedia: “ Change Management is an organizational process

aimed at empowering employees to accept and embrace change in the current

business environment”

This is another definition that says that change management is something that occurs organizationally speaking, but it’s a process that means that is something that occurs with different activities. With this definition, we point the emphasis on the acceptance phase of employees, who need to embrace change (embrace meaning first of all understand why change occurs and accept change). Employees are going to lowering the barriers to change, because they understand the desired future state is better than the current one, even if there’s uncertainty. It’s important that employees make this shifting, because it’s not natural, it’s not something that occurs naturally. People need to be part of the change. Change Management is related to Project Management:

- The goal of Project Management is to plan. It’s the methodology and methods for

planning, for managing time, resources, communication and for creating something new

- Change Management is used for adopting

IS CHANGE A NATURAL PROCESS IN ORGANIZATION?

There are 2 big theories of looking change:

  1. Change is a natural process , even we don’t have any new project before. It’s natural because individuals, teams and organizations change by definition (because our brain is made for changing). Since organizations change by definition, the change is embedded and continuous.
  2. Change occurs just when it’s a big impact that we call radical change , and we need to plan it because it’s not embedded and continuous.

Starting from these perspectives, there’re 2 big ways of changing: one is continuous and embedded without planning; the other one is radical, big impact and needs to be planned. But both managed. Managing is not a synonym of planning: planning means that there are methods, tolls that help in defining the future and the ways to reach the future; they are not the same thing, because we can manage even if we don’t plan. What we will see in Change Management is how to manage both the changes, the planned and the unplanned. WHAT IS THE MAIN TOOL THAT WE USE TO MANAGE THE FIRST THEORY? The learning and the culture of the organization. Organizational culture is the culture that effects the way the employees act, think, make decisions inside the company. The culture can be very proactive or less proactive. It creates the background for changing naturally. The predominant culture is the tradition, the history, the past. It’s present in small and individual companies, that are usually founded by an entrepreneur who doesn’t want to change. Small companies usually stay small in their life, because they don’t embrace the change. Bigger companies usually have known big transformative changes, because otherwise they couldn’t be as big as they are. Organizations are bigger and bigger because:

- They make merge and acquisition (M&A), meaning that organizations buy other

organizations. Buying another organization, there’s a big radical change because there’re two organizations, usually one bigger than the other, that have to collapse in one

- Or also because they recruit people meaning that they go to the market to hire

people, who usually are lower-experienced people It’s true that change can be naturally, but in some periods of time, change can also be radical. When it’s radical for something that is new, we need to plan the change. When it’s not radical and so it’s embedded, we need to manage by learning and culture. Organization can be seen as an organism, a system that is within an environment. We call environment what is external to the organization like the market, clients, competitors, suppliers. In the environment there are also norms, regulations, institutions… Inside the boundaries of the organization, there’re 2 subsystems: formal and informal. The formal subsystems (meaning visible and declared in the company), that manage the organization, are:

equality. All the organizations, especially the big ones, are forced to create D&I politics because clients and partners look at the organization also for its D&I rules

  1. Political-legal influences : they are the institutional environment in term of rules, norms country based or for Italy, European based. In Europe we are very strongly committed through the Green Agenda, meaning what we call ESG principles. ESG stands for Environment Source Governance: the European Parliament asks all the European countries to introduce these new principles for reducing their impact on the environment The cost of producing in Europe is very high also because of the regulations. Europe has regulations because:

- from an economic point of view, given the fact that we don’t have so many

resources, we have to reduce the consume of them

- from a cultural point of view, we are people-oriented and less profit-oriented

MORE DETAILS OF THESE FACTORS —> PEST (Political, Economic, Social, Technological) FRAMEWORK POLITICAL FACTORS: There are legislations but also rights: in Europe we have universal rights; babies under 14 cannot work. Even wars have an impact; they bring inflection. Taxation > startups (new companies, also called

New Co) have lower taxation because of the

competition. Trade union activities > they can create change because they ask for rights in terms of salary, security. For example ATM is very close to trade union activities because of strikes. ECONOMIC FACTORS: Unemployment rates > in Italy are going down because demography is helping since there are no people. Competitors > in Italy there’s these globalization factors, meaning there’re a lot of service industries: we are losing our manufacturing and we are moving to services. SOCIO-CULTURAL FACTORS: Demographic trends > Demography: in Europe the life expectation is going higher and higher, but we don’t have enough children and that means that our balance is negative, we have more old than young people. Demography affects the working strategies, meaning who will be the employees of the future in an organization that has no young people? Low demography means less production because there aren’t enough people to sell products. Skills availability > there’re skill gaps, shortage of skills; it’s important for organizations, because they need to invest in the skilling. Attitudes to work > generations at work are totally different, for example GenZ vs Baby Boomer: GenZ wants to be more free because it has seen their parents working a lot; about the future, Baby Boomer think about the long-term (houses, carrier), while the GenZ think about the short objectives (step by step). TECHNOLOGICAL FACTORS: Information technology/the Internet > now information flows outside and also inside the organizations. New production processes > like robotic production; machine learning: it’s not just humans, but also the machines change.

All these forces ask the organization to change. Some of them are very radical, others are smooth. What is difficult is that these factors are all together, they are affecting at the same time the same organization; so it’s not easy for an organization to manage the change and to survive. An organization can also fail; there’s a turnover meaning that there’s a rate that establish how many new born organizations are. In Italy at the moment there’re a lot of new organizations, because there’re a lot of new startups thanks to incentives, new technologies, new skills. These startups are founded by people from universities who want to create their own company. The number of startups depends also on the environmental culture, meaning from a social point of view: in the USA it’s important to have your own company, in Italy not so important.

FROM CHANGE TO INNOVATION

CHANGE FACTORS: THE ROLE OF INNOVATION

Innovations is something that creates inside the company a new way of producing or delivering goods or services. It can be a new product, process or an improvement of an existing product or process. There’s a cause-effect relationship between innovation and change. Innovation is the cause and change is the effect. Before define the change, we will need to frame the innovation because innovation can be very widespread around the organization. TYPES OF INNOVATION - LEAN VENTURES, 2010 There’re 9 types of innovation depending on what we are going to innovate:

  1. New products : such as electric engines
  2. New processes : processes are also called operations; new way of producing or delivering of existing products (examples: E-Commerce: a way of selling digitally)
  3. New services : they are the opposite of products; such as opening a new area for children in the hospital
  4. New business model : it’s a way to make revenues, that are sales, incomes, rates; who is going to pay for the service or for the product; for example who pays for Google Maps? There’re different types: business-to- business model: companies that sell data like Google, ChatGPT (Glovo, that needs the information made by Google Maps to delivery); business-to-consumer model: like Ikea, the consumer who pays is the person who wants the values. (Non-profit organizations are not obliged to create margins, but they have revenues, because they have costs)
  5. Incremental model : when it’s an improvement
  6. Disruptive model : when it’s something new
  7. Outcome driven : driven by the goal, the outcome; the clients, the market force the innovation
  8. Organization driven : the way people are managed and organized
  9. Breakthrough : we create a totally new paradigm of organization; when there’s a big technology change like in this moment with AI

Lesson 2 - 15/

TYPES OF INNOVATION: WHY? (INNOVATION MATRIX)

TYPES OF INNOVATION: WHY? (EXPLOITATION VS EXPLORATION INNOVATION)

It’s another way to classify innovation, always on the purpose. It’s from Barry O’Really, an American scholar who defines the purpose of innovation making a division between exploring and exploiting innovation. It says that the organization can explore or exploit : EXPLORE

• Strategy: they explore when the strategy has radical or disruptive innovation, they

create something that is a new technology and a new business model so we can called it also exploration, meaning funding something new

• Structure: it’s usually made by small cross-functional multi disciplined teams

• Goals: creating new markets, discoveries new opportunities within existing or

adjacent markets

• Risk management: this is a very risky innovation, because we are introducing

something new, so we have uncertainty (in radical innovation, we have 2 kind of uncertainties: technology and market; in disruptive innovation there’s a big presence of unknown)

• Culture: it will be on risk taking, high tolerance for experimentations, focused on

learning. Organizations that want to explore, have the culture of experimenting and also of failure; in organizations, high tolerance means high risk taking. We saw different failures in the past like Kodak because it couldn’t explore new innovations and because the culture and the money couldn’t sustain the exploration strategies

• Measure of success: it’s achieving product and market fit

EXPLOIT

On the opposite, it’s the strategy of incremental and architectural innovation, optimizing existing business model.

• Culture: the dominant culture is the satisfaction of the costumers, employees. Total

quality management: it’s a managerial strategy that comes from Japan, that says that every process, product needs to be updated to be adapt to the new needs of the clients. Culture is 0 mistakes of existing market and technology. For this culture, where quality and costumer satisfaction are very strong, the exploitation means that the existing technology is maximized for capturing markets for how performing from what we already know, exists

• Measure of success: outperforming forecasting, achieving planned milestones and

targets; this culture is more based on planning and control than the exploration. In the exploitation the uncertainty is lower, we have to optimize what we already know, so it’s easier

• Risk management: there’s no a big risk of failure, even there’s the need of balancing

the trade-off for each product or each service. (Trade-off = balancing of opportunities and costs, what we call business cases = comparisons between benefits and costs)

In autonomous cars there’s the problem of ethics, because we cannot teach to AI from an ethical point of view what is the best to do in some situations, where we put the ethics before the decision —> problem in decision making. So Google is going to develop these autonomous cars, trading to solve this problem with an exploration mindset, but at the same time it’s going to exploit all the technologies it has. The biggest Google technology is the search engine, that is continuously exploited (≠ Yahoo).

It’s possible to have both: these organizations are called ambidextrous organizations,

that use the left and the right in the meantime or in different times. Another way of classifying innovation is about where the innovation comes from. Innovation can flow:

- from inside, from the organization itself and it’s called closed innovation

- from external providers and it’s called open innovation

CLOSED INNOVATION

It’s where new products, new services are discovered, developed and commercialized internally typically with an IT department or with innovation teams widespread in existing departments. (In the Japanese culture innovation comes from the bottom in all the processes, the so called quality). Innovation is internally developed in all the parts of the organization, not just in an area. OPEN INNOVATION It’s when ideas and innovation can be originated from external sources, which are:

- Customers: for example, the way of innovating of Lego is with the costumer

community; we can enter in the community online and we can coo-create with Lego designers the new products

- Suppliers: when they develop innovations on their services and products. Amazon

Web Services has developed a new business model on the software supplied chain,

that is called pay-per-use business model. In Amazon Web Services, they apply the

same pay that users use, also to enterprises, that buy services from Amazon, they start to buy these softwares with this new business model

- Universities: they have 3 missions: teaching, researching (+ balance between these

  1. and transferring (= to be a civil servant of the economic market; transfer also to the environment what we know, the knowledge. How? We transfer with conferences, through life-long learning, with startups). Universities are very full of new innovators also because they have the culture of innovators, they are paid for creating new assets

- Startups: they are the new companies (new co) that enter the market for creating a

new radical or disruptive innovation. They are focused on new technologies and services, they usually can grow with 2 strategies: the first one is to sell the new product, service directly to consumers or to sell new stuff to another company with a b-to-b business model (they sell the new market to what we call income-bet, that

Closed innovation:

- leadership on the market, being the first

- leaders are the winners

Open innovation:

- The focus is at the end of the funnel, it’s not just at the beginning

- The business model is half of the innovation, it’s how to go to the market, not

necessarily be the first

- Last principle means that we can also rent our IP, meaning let’s use our

technologies. IPs can be bought or rented also from externals It’s possible to have both closed and open innovation. Depending on the business and the competences values for some they can buy or they can create. For example: there are some organizations that now are creating their own LLM and others that are creating specific LLM based on Open AI. Open and closed are also referring to open and source in the software arena. Open source: there’s no intellectual property on the kernel, that can be intellectual property once we use the basic source, we can create application with that source so the intellectual property is on the application. TYPES OF INNOVATORS STRATEGIES: WHO? We can divide innovation according to the innovators, who can be external (external) or internal (closed) and high and low, meaning the amount of money we need for investing in that innovation. When we have high need of money:

• Builders : when innovation asks for higher investment and we want to have a closed

strategy, we act as builders through innovation labs inside the company, innovation

transformations, centre of excellence (departments with specialized knowledge on a given process) or internal accelerator. This is the way the biggest companies like Google and Apple are creating internal knowledge

• Hunters : they are the ones who invest a lot of money, with external approach.

Usually they are venture funds (= people who usually have a lot of money, they get money from the investors and they invest in companies, venture because they normally invest in startups). Structured partnership: like JV. External accelerator: one of the main accelerators we have is in Bergamo, it’s a digital district where inside there are firms, making startups but also paying these areas for creating one kilometer of innovation in that area. Then there are lot of facilities in some accelerators, meaning that a startup can be there and they give it spaces for meeting people, having conferences and marketing support, all the information that they need to accelerate the time to market of their innovation. External accelerators are the context, where usually startups and innovators can grow and be visible to the income-bet or other organizations using processes of the accelerators. Co- development track: like JV When we need lower amount of money:

• Experimenters : internal incubators are the context where the ideas are created,

they usually start from new ideas and create the company (while accelerators come after from the company to the market). Design sprint: are programs that internal companies are developing for designing innovation. Community of practice: groups of people usually connected in volunteering programs, they are not mandatory; practice because they share the same knowledge, practice. Innovation training: there are some learning programs are pushing innovation dynamics

• Explorers : they are external incubators. External hackathon: programs done for

students and used for recruiting people but also when an organization needs something very new, they are very challenging 2-day programs where all the participants in groups are asked to create some innovation. Co-experimentations track and co-innovation sessions: are all pointed to work with others for innovation but with low money TYPES OF INNOVATION STRATEGIES: HOW? (BCG)

• Dunphy and Stace (1990) —> approaches to change (introduction of leadership in

change + focus on the scale and the style of change) They are more focused on defining and describing what change is. Emergent and unintentional change:

• Weick (2001)

• Greiner (1972) —> organizational growth (ecology of population: organizations like

humans grow and become mature and then start decline. Organizations can grow in unintentional way, we cannot stop the growth of change. It’s called ecology of population, because Greiner applies the Darwin theory PLANNED CHANGE: LEWIN, 1943 In all organizations there’re what Lewin calls planned change , that is an organizational development that prepares the entire organization for new goals, strategies, culture or other relevant areas. It means that change is something planned and visible, that creates a new status and that can be managed. There’s a point of time during the life of the company, where there’s the need of change and the change occurs. To manage this kind of change, Lewin suggests to use 3 semi-stable stages :

  1. The first stage is unfreezing : the organization is like frizzed, so when we want to change something, we have to unfreeze the organization, meaning thinking to the organization as it can be changed. There’s a need of change
  2. The second stage is moving : moving from a status A to a status B. During this phase the change is created and implementing. Every change needs this moving phase
  3. The third stage is refreezing : it means that a new equilibrium should be reached. There is a learning and an institutionalization of the change, that means that employees think to the new organization as the common one. During this phase, new behaviors become the normality Change doesn’t appear randomly, but it needs a structured approach so the change should be planned. KOTTER, 2017 He defines a change model, that is similar to the Lewin’s one because they have in common the same perspective: change is something that can be planned, managed and is developed in steps. The difference is that the Kotter’s one is more years later and with 8 steps.
  1. Establishing a sense of urgency (Lewin > unfreezing): it’s important to create a rational sense of urgency of change, that means that the change is needed for the entire organization and should be done now or in the short-term and there’s a risk to not change. The sense of urgency is useful to create the motivation around the change. It corresponds to why do we need the change
  2. Forming a powerful coalition : in the organization it’s necessary to create a coalition, a team who have the power and influence of changing. What is important is to define the leadership of change; the leader should be not just one person, but we need a group of people. Coalition, that should be powerful, is important to create more sense of democracy and however the team could have different ideas, at the end of the days they will all share the same vision and goals
  3. Creating a vision : meaning which is the final goal. Vision is something that can be communicated, shared, understood also from the stakeholders, even if they’re not in the team of coalition. It’s the direction of the change, it corresponds to where are we going
  4. Communicating the vision : it’s necessary to use every possible vehicle to communicate the vision to the stakeholders. The storytelling is the way to communicate motivation, it’s very important because people can embrace, understand and believe in the vision or not depending also on the way the vision is communicated
  5. Empowering others : the change is not just a matter of the top managers, of the powerful coalition, but it’s necessary to empower all the people to the change so to create participation
  6. Plan for and create short-term wins : change can be very long and risky, so managers need to plan visible and concrete wins, implemented and recognized from the employees, who are pushed to reach the final goal
  7. Consolidating improvements : means use credibility to change policies and procedures that don’t fit vision to recruit and promote employees, who can implement vision
  8. Institutionalizing changes : means create new styles, rules, culture which embrace the change like Lewin defines in the refreezing phase These last two phases are important for creating the sense of normality. KOTTER DEFINES CHANGE AS:

- a planned process

- aimed at creating a transformative change > since he was mainly focused on the

change that has the power to create transformative organizations

- generated and guided by a powerful coalition > usually a top coalition, because it

needs to have the power, that usually comes from the top

- with the support and empowerment from the bottom of the organization

GRUNDY’S MODEL: 3 VARIETIES OF

CHANGE

lead the change, more than when they are reactive. Re-orientation and tuning are less risky than adaptation and re-creation because since the need comes from inside, managers can plan in advance and they can decide also when to plane without any urgency and hurry. DUNPHY & STANCE (1990): APPROACHES TO CHANGE They define change according to 2 different definitions:

  1. SCALE OF CHANGE - they scale the change in 4 areas:

• Fine tuning : the same that Nadler and Tushman define

• Incremental adjustment : it’s an adaptation, an adjustment like Nadler and

Tushman say Then there’s transformation, that is not divided from inside to outside as Nadler and Tushman make, but from module to corporate:

• Modular transformation : it’s a big change that occurs just to one department or

to one organizational unit

• Corporate transformation : it’s a big change that occurs to the entire organization

  1. STYLE OF CHANGE MANAGEMENT - they categorize the change in:

• Collaborative : when there’s a democratic way of leading and empowering change

• Consultative : when top managers (powerful coalition) ask to employees the

motivation and their ideas on the change; people are not involved in the change

• Directive : when the style is mainly focused and defined by top managers who

decide to have a style of direction and ask the others to follow the direction to change

• Coercive : top managers create the only route, without looking behind them and

asking; they are not interesting in the thoughts of people According to Dunphy and Stance there’re 4 kinds of change:

  1. Participatory evolution : it’s an approach that managers can use when organizations are fitting, meaning that the change is easy to achieve and it’s minor or when there’s time available to engage people
  2. Forced evolution : when the adjustment is not very fitting or we don’t have time or when stakeholder have different interests in the change; to force evolution means that they need to create a more directive or sometimes even coercive style, because groups of interest are competing in the interest of change
  1. Charismatic transformation : it can be used when organizations are out of fit and even there’s little time, top managers need the support of people during the transformation
  2. Dictatorial transformation : it’s the approach used by top managers who need a radical change, but they don’t have time or there’re opposite interests of stakeholders or there’s survival risk of the organization No one is better than others: it depends of the scale of change but also on the time and the stakeholder’s interest in changing. WEIK & QUINN (1999): EMERGENT & CONTINUOUS CHANGE They define change as emergent , meaning:

- unpredictable > the opposite of what the other theorists say)

- often unintentional > with 0 rationality, that means that there are no intentions to

use, change, create the effect of change

- that consists on ongoing accommodations, adaptations, and alterations that produce

fundamental change without a priori intentions to do so This means that managers cannot manage everything of the change, but just few things. The change will flow depending on the culture of the company.

• This type of change occurs when people re accomplish routines (processes and

activities because there’re rules or behavior that let them be done in a continuous and unique way) and when they deal with contingencies, breakdowns and opportunities in everyday work

• Much of this change goes unnoticed, because small alternations are lumped

together as noise in otherwise uneventful inertia and because small changes are neither heroic nor plausible ways to make strategy

• The moral of emergent change seems to be that if something is not invented within

the organization, it should be regarded as suspect, because Weik and Quinn think that the organization will not adopt the change So they introduce this concept of emergent change, something that can be seen mainly a posteriori, neither before nor during the change, but just after the change. WEICK & QUINN (1999): EPISODIC VS CONTINUOUS CHANGES They make a distinction between episodic and continuous change. NATURE OF CHANGE:

• episodic change is infrequent, discontinuous and intentional

• continuous change is ongoing, evolving and cumulative (= change cumulates the

effects) TIME SCALE:

• episodic change occurs in distinct period of time during which an event occurs

THE GROWTH MODEL (GREINER, 1972) - ORGANIZATIONAL ECOLOGY

According to Greiner the growth model of the organization is dividend into 5 phases , that go along the organizational age and the organizational size. In each phase, there’re some:

- evolution phase (what Weick and Quinn define as emergent and continuous change)

- and then revolutionary phase with a breakthrough, that is something that leads the

company to the following phases Leaving the discontinuous point the company can enter the following phase. This discontinuous moments are crises, that can be predictable. According to Greiner, every company will suffer this crisis, because they are normal in the growth process like humans. This growing model combines emergent and discontinuous.

  1. The first phase is the startup : the company is small and new and its goal is to survive following the market, the blu ocean. At a certain period of time it goes in the first crisis, called leadership crisis. The leadership crisis is the crisis made by the leaders, who usually are the founders, who realize that they cannot do everything on their own. But if they hire people, they go on the second phase
  2. The second phase is the phase of direction , a means of the strategy. At the end of the second phase, there’s an autonomy crisis , meaning that the organization needs to lead the people to be autonomous and responsible inside the company. When this crisis is over, there’s the third phase
  3. The third phase is the delegation : top managers need to think about how to delegate the decision. This phase is very important because to grow we need to delegate power. With delegation there’s a control crisis , since we have to delegate and control at the same time
  4. The fourth phase is the collaboration : organizations ask for internal organizational collaboration. The crisis is called staff crisis , so coming from the employees, because the organization is very big and people suffer the need of collaboration. If organizations pass this crisis, they can arrive at the fifth phase
  5. The fifth phase is mainly based on the coordination among departments. Organizations can grow more and more till what Greiner calls unknown crisis , meaning that the organization is so big and old that can suffer different kinds of crisis

According to the growth model, organizations experience periods of emergent, normal, natural change and some breakthroughs crisis that are mainly due to internal factors that should be solved before going to the other phases. Startups usually die when they cannot survive from a financial point of view, but also when they cannot solve the first crisis (leadership crisis). Founders have to protect the organization, but during the organization’s growth they should let the organization making its life, so they are not the owners from a control point of view. Sometimes we cannot understand in which phase we are, like for humans. Depending on the lens we use, we can manage

Lesson 6 - 29/

AI AND GENERATIVE AI - ACCENTURE

Marco Siciliano: managing director of Accenture, a specific part of data and AI practice

and more specifically he’s responsible for AI capabilities in Italy, for Central Europe and Greece. On 30 November 2022 a new product on the market was released, the ChatGPT application, which basically demonstrated how to leverage on generative AI and specifically the concept of a large language model to provide service to the final customers and users. ChatGPT is an application based on a large language model, which is GPT. GPT is the acronym for Generative Pre-trained Transformer , which means that it generates language basically or at the beginning it was generating just language. It’s pre-trained transformer, meaning that it’s a model, which has been pre-trained on a wider knowledge base, and it’s based on a specific neural network which is called a transformer. The first remark is that we’re talking about generative AI in the last three years, but transformer and the foundational technology behind this application have been developed in the last decade. OpenAI was not so known before ChatGPT, now it’s an incumbent. OpenAI was founded by Sam, Alvan in 2015, so we’re talking about 10 years ago.

  1. First consideration: this is something really new in the application, but at the end of the day we’re talking about something which is quite mature, since it’s been developed in the last 10 years
  2. Second consideration: ChatGPT is a very demonstrative application, it’s able to answer basically to any question and this is its power, but at the same time it’s the first weakness of it because it’s accessing the widest knowledge that we have, the Internet, which is also the less reliable one, since in the Internet there’s everything, quality documents, research documents, and also garbage
  3. Third consideration: ChatGPT has a quite high level of creativity, which means that it typically tries to answer every time to any question, sometimes inventing, creating some contents which are not real, not reliable and not verified Nevertheless, the technology behind can be focused on specific knowledge.

VAAN is another neural network, it stands for Variational Autocoder. The other one is

GAN, Generative Adversarial Network.