July 9, 2012

Managing episodic and continuous change


Introduction

Organizational change is the transitioning of an organization from its current state
towards a desired future state (Palmer, Dunfin & Akin, 2006). Weick & quinn (1999) in their article titled “ Organizational Change and Development“ discuss organizational change as either episodic or continuous. This distinction between episodic organizational change and continuous organizational change provides different ways to understand change and present different implications for implementing organizational change. Episodic organizational change is systems based macro perspective of organizational change where change is considered rare and radical whereas continuous organizational change is a process based micro perspective where change is considered ongoing or constant.

Weick & Quinn (1999) argue that the same configuration of organizational design and capabilities is best for managing both episodic and continuous forms of change. The purpose of this essay is to examine if this statement can be supported or not. In order to do this this essay will analyze and understand the processes of episodic and continuous change from two perspectives;

  • Organization Readiness to Change: Is a self-organizing and continuously adaptable organization ready for any kind of change?
  • Link between episodic and continuous change: Are episodic and continuous change mutually exclusive, or is there a link between these two phenomenon?
This essay will argue that the organization which is continuously changing is a “change ready” organization and therefore ready for episodic change as well, not exclusively continuous change. This essay will try to show that there is a strong link between episodic organizational change and continuous organizational change. And this is one of the reasons why the same approach works for managing both continuous and episodic changes.




Background

Episodic Organizational Change

Episodic organizational change is a systems-based approach to change. Organizations are viewed as stable and inertial and change is something that is rare. When change generally occurs in such organization, it is a planned and deliberate approach. The underlying assumption in an episodic organizational change perspective is that the organization is in a state of equilibrium, therefore must be acted upon to be changed, and then must be returned to a new state of equilibrium. Changes that are episodic are consistent with organizations that go through a planned, discontinuous and infrequent organizational change (Weick & Quinn, 1999).


Episodic change is a macro-level view of an the organization undergoing a change in its entirety . When viewed at a macro-level, change is seen as an occasional interruption and disturbance in a stable environment.with key concepts being “inertia, deep structure of interrelated parts, replacement and substitution, discontinuity, revolution” (Weick & Quinn, 1999, p. 366).

Organizational Inertia or stability or equilibrium are often created due to past organizational success and conservative organizational culture. Thus a change that is often triggered by an external event after a period of stability tends to be to be dramatic. In an episodic organizational change, the focus is on upper management or skip-level management to direct organizations with a clear vision, mission and goals to create episodic change. The role of a leader is central to a planned episodic change to develop and communicate a vision, fixed objectives and embed new approaches in the organizational culture (Kotter, 1996).


Continuous Organizational Change

Continuous organizational change is a process-based approach to change and considered as “ongoing, evolving and cumulative” (Weick & Quinn, 1999, p. 375). The underlying assumption is that
change happens all the time with small continuous adjustments and culminate to create substantial change” (Weick & Quinn, 1999, p. 375). Such organizations are viewed as self-organizing with continuous change as normal with no return to equilibrium or state of stability.

Continuous change is driven by alertness and the inability of organizations to remain stable ( Weick & Quinn, 1999, p.379). Continuous organizational change views change at a micro-level. Constant changes to organizational processes and practice are considered part of the organizational culture. When viewed from the process-related perspective, changing patterns in micro-level processes, act and amplify to reveal emerging change patterns. Key concepts are “recurrent interactions, shifting task authority, response repertoires, emergent patterns, improvisation, translation, and learning” (Weick & Quinn, 1999, p. 366).

The role of the management in continuous organizational change is very different from an episodic change perspective in that it is viewed from a micro-level, with the leadership role as a participative process with continually changing, and co-constructed organizational goals that result in emerging patterns of change.




Organizational Readiness to change

Organizations will face changes due to various forces surrounding their environment. These forces can be both internal or external to the organization. To successfully lead any kind of change, whether in a micro-level or macro-level, it is critical that the organization must be ready to change. Change readiness is one of the major components for successfully leading change (Palmer, Dunfin & Akin, 2006.p128).

According to Weick and Quinn (1999), an episodic change followed Lewin’s three-stage change model. According to Lewin's three-stage change model, a change process will follow stages of
Unfreezing” , “Change” and “Refreezing” (Palmer, Dunford & Akin, 2006). The unfreezing stage involves moving an organization from its current state of inertia to a state where it is ready for change. This need to unfreeze is identified in Lewin's change model because human behavior is based on a stable situation with forces restraining change. During the unfreezing stage, a state of “change readiness” is created by unlearning old behaviors and focusing on the creating a motivation to change . This idea of unfreezing an organization is also behind the first six steps in Kotter’s 8-step change strategy. In Kotter's eight steps for organizational change, the management need to create an organization comprising of a group of individuals who can work together to enact change, with conscious vision that will guide the change effort. Once this is created, the organization will be ready for change. According to Isabella's (1990) process model of how change affects individuals during the implementation of organizational change, the four stages of “anticipation”,”confirmation”, “culmination” and “aftermath” describes the individual’s experiences with change. The first two stages of “anticipation”, in which individuals interpret and absorb information about the change into a perceived reality and “confirmation” stage, where perceptions and assumptions are confirmed and ingrained, are the clearest aspect to Lewin's “unfreezing” stage.

These traditional change models of Lewin, Kotter and Isabella uses a process framework for
understanding the progression of an organizational change. Each of the models presented above suggest that individuals in an organization are barriers to change because their work behaviors are fixed, requiring change models to initiate with an 'unfreeze' of the status quo before any kind of change can proceed.

Organizational readiness for change is influenced by ; (a) capacity and self-efficacy of employees to change, (b) organization appropriateness for managing change (c) management support for change . Therefore preparing or readying an Organization for change can be viewed from the perspective of an employee's commitment to change and organizational culture to support it.



  • Employee commitment to Change;
Any type of organizational change involves changes to an individual's roles and responsibilities and it is natural that individuals will have reaction to these changes. Employee resistance to change and perceptions of the change process are important drivers of change success (Palmer, Dunfin & Akin, 2006. p146). Hence an examination of the human side of change is needed for the success of change initiatives. To create change, change initiative must appeal to employees cognitively, affectively, and behaviorally. For the change to take place employees must be prepared to change, therefore employee commitment to change is important for a successful change implementation.

Employees usually resist change for a multitude of reasons as an individual's predisposition toward change is personal. Negative reactions to change relate to aspects of loss like loss of job or control, fear of unknown, combined with a climate of mistrust and disruption. This is typical in a static organization where stability is the norm. When an organization is static and process driven, then any deviation from the status quo cause these negative reactions. To overcome these negative reactions, management have to support employees going through major transitions in the workplace by considering the psychological and behavioral roots of employee. According to Scott and Jaffe's model of resistance cycle people go through four phases of response to change, i.e., denial, resistance, exploration, and commitment (Palmer, Dunford & Akin, 2006). Management must communicate the objective and rationale behind the change initiative and make the individuals understand consequences to the organization if the change is not achieved. As individuals evaluate and respond to change initiatives, then change implementation can gain momentum (Isabella 1990). By making employees view the change initiatives from a perspective of an organizational strategy, will change the terms of employees' role and responsibilities towards the organization and management can secure commitments based on these revised objectives that aligns with organizational change initiatives.

Now, a flexible self-organizing and adaptable organization which considerers change as part of the routine is already at a stage where the employees understand that change really is the only constant and are thus always prepared and committed for a new change as soon as any single change is completed. Employees in a continuously changing environment would have developed change-related self-efficacy, and when large episodic changes happen they are mentally prepared and less frightened.



  • Organizational Culture of Change;

Even-though employee's reaction to change is individual and personal, they are affected by the organizational climate they are constrained within. Most change models will stumble when they face organizational designs and management practices that are inherently anti-change (Worley & Lawler III, 2006). Factors significantly related to readiness for organizational change are management support, flexible policies, structures and behaviors. However, all these are directly linked to the concept of the culture of an organization and any changes which are sought will have to be effected within the constraints of the existing culture (Worley & Lawler III, 2006). Therefore effectiveness of change efforts is largely determined by the organizational culture.

The most effective way to change individual behavior, is to put individuals in an organizational culture which imposes new roles and responsibilities on them that encourages and supports change Organizational culture is more complex and hard to change as the culture is based on its members shared values and norms built up over the life of the organization. Until new behaviors and beliefs are rooted into the norms and shared values of the organization , they are subject to degradation as soon as the pressure for change is removed (Kotter, 1995). Thus the role of culture is significant in influencing organizational change . The critical task for management here is to produce and maintain an organizational culture that is able to secure the basis for the next subsequent periods of change.

In a traditional static organization, institutionalizing a new organization culture will take a long time as employees need time to adapt or cope with the change. The episodic change approach in a traditional organization setting assumes that all individuals involved in a change initiatives are willing and interested in implementing it. This assumption clearly ignores organizational politics and conflict or assumes that these can be easily identified and resolved. On the other hand in a continuously changing organization, continuous change can happen only if it is ingrained in the firm's culture, this may be a result of a deep rooted culture at all levels of the organization to continuously change. This kind of continuous change becomes the part of every-day life in the organization and manifests typically as as a change ready organizational culture. As the organization faces new realities in a changing environment, they will be able to adjust and develop an adaptive capacity into the organizational culture. This culture to adapt to continuous change is equally supportive when the organization is faced with an episodic change.Therefore, the culture of change acceptance and adaptability is an important driving force for not only continuous changes but also for episodic change as well.

Many of the principles of continuous change, i.e, embedding the flexibility to accommodate everyday contingencies, opportunities and consequences that punctuate organizational equilibrium are also needed when faced with an one-off episodic change. Brown and Eisenhardt (1997), in their study of the computer industry found that the continuous change organization had organizational structures that was flexible enough to allow various scale of change to occur and be successful, whereas organization with rigid or semi-rigid structures prevented or inhibited change. This is not limited to computer industry where innovation is vital. Tucker, A. L. and Edmondson, A. C. (2003), in their study of the hospitals showed that improvements never took place due to rigid management polices and organizational structures that prevented nurses to inform or escalate the process failures they encounter to the management, thus preventing changes from taking place . When an organization is rigid the process of change becomes too dependent on senior management or skip-level managers, who in might not have a full understanding of the timing and consequences of their decisions at the micro-level. Whereas by developing sensitivity to the change processes continuously at work within the organization, management evaluate and influence change and develop organizations that can readily adapt in a radical change.


Episodic change is driven by inertia and the inability of organizations to keep up, while continuous change is driven by alertness and the inability of organizations to remain stable (Weick & Quinn, 1999, p.379). Rather than pushing for change, organizations that build adaptive capacity has the ability to pull for change by making change, the norm within their organizations. Such organizations are truly change ready due to the organizational culture and employee commitment .





Linking Episodic change to Continuous Change

Continuous change and episodic change are not necessarily mutually exclusive, rather they both provide different views of the same phenomenon. Tsoukas and Chia (2002) suggest that the continuous change gives a more comprehensive understanding of how change is actually
“accomplished on the ground.” Episodic change provides a macro level perspective of organizational change whereas continuous change provides a micro-level perspective. The macro-level view provides measurable milestones, while the micro-level views these changes as they happen (Tsoukas & Chia, 2002).This distinction between the micro and macro levels highlights one of the limitations in perceiving episodic and continuous change as mutually exclusive. From the macro perspective, an observer might see transformational changes in strategy or operations. Whereas, when observing the same transformations from the micro level might show how dynamically interacting individuals influence these changes in strategy and operations as a series of evolutionary stages.


Organizational change is present both at an operational and strategic level.

  • Operational-level Change

For macro-level operational episodic change, a CEO might alter the organizational chart, redefine operational processes to guide organizational behavior. However, to achieve this macro-level change the CEO will have to dig into the micro-level, so that he can identify and understand the deeply held values, and assumptions that may be held by the lower-level organization and its employees. This shows that organizational change is not just about changing macro-level artifacts, like charts and processes; but that it also involves digging into the micro-level phenomena that influence macro-level operational changes. For example, study by Feldman (2000) and cited by Tsoukas & Chia (2002) shows the pattern of the US university move-in routine which transformed from being a stable task of getting the students to simply move-in into their halls of residence to become a more complex coordination task involving the athletic department on football schedules, local city officials to manage traffic jams and accommodating the vendors into the move-in process .

  • Strategic-level Change:

One can view the same from a strategic change perspective also. Strategy is not always formulated by top management as strategies can emerge from anywhere inside an organization. Emergent strategies which emerges from the micro-level interaction of individual throughout the organization . These strategies become organizational when the patterns developed through emergent processes are adopted by the organization as a whole . Leaders and managers at the micro-level who understand the external environment and the internal capabilities of the organization often see important trends that call for organization change before senior management does. These strategic changes that arise at the micro-level gets shared, filters upwards and over time can create organization transforming changes. For Example, Brown and Eisenhardt (1997), in their study of the computer industry found the companies like cruising, midas and titan which were were successful due to development of product portfolios by anticipating and react to the future. This study showed a link between successful product development portfolios and set of organizational structures and processes that were related to continuous change .


Another limitation of looking change as a purely episodic process is that the “freezing” stage of Lewin's model represents a new equilibrium . This new organizational equilibrium must be altered again whenever the organization faces new threats and opportunities. Throughout history, organizations have viewed change through the lens of a stable business environment—an environment in which routine and order were dominant constructs that framed business reality. Operating in an environment thought to be reliable, leaders and organizational members acted with a sense of security and certainty (Tsoukas & Chia, 2002). However today’s competitive environment is hardly static. Many of organizational paradigms and strategic thinking which assumes organization to be static were developed in the 1970swhen speed and flexibility were less relevant to organizational success than they are for con-temporary firms ( Brown and Eisenhardt 1997). In a world that is constantly changing, an organization's design must support the idea that the implementation and re-implementation of a strategy is a continuous process (Worley & Lawler III ,2006). One of the many reasons for change is that the organization needs to be in line with the changing environment in which it operates. 
As we know the environment changes continuously. If the organization does not adapt itself to the continuously changing environment there will develop a gap between the organization and its environment. If an organization tries to keep up with changing environment assuming change as an episodic process , then the high frequency of periodic episodic changes would simply not be sustainable. So adapting to continuous change is the only way to survive . Change has become a normal condition of organizational life (Tsoukas and Chia .2002 p.567) .


Further, if change is considered as being constant, then it invalidates the assumption that a change can be episodic as episodic change creates a new status quo. From the micro-level perspective this new status quo is an illusion because change is constant. When we view macro-level change as leading to stability, we are merely ignoring the subtle but continuous micro-level changes (Tsoukas & Chia, 2002) Acccording to Beer and Nohria (2000) cited by Tsoukas and Chia (2002), approach that gives priority to stability and treats change as merely a secondary part is being pragmatic. Change programs that are informed by that view often do not produce change. From the study of the computer industry conducted by Brown and Eisenhardt (1997), we can see that that the companies had developed ability to sustain continuous change by an effective combination of flexibility and preparation for multiple change scenarios. This organizational model of self-organization enable firms to prosper not only in continuous small changes but also in an era of rapid transformational change.

From this perspective, episodic change is a culmination of many continuous changes as an organization is constantly changing and multiply toward a pattern of adaption and evolution.



Discussion and Conclusion

Weick & Quinn (1999) statement that “the same configuration of organizational design and capabilities is best for managing both episodic and continuous forms of change” is certainly well supported.

It is widely believed that for the completion of any organizational change, the change readiness is fundamental to its success. The pre-requisite for any organizational change initiative is the need to advance organizations to the point of the change readiness. Managing organizational change readiness not only requires restructuring of organizational systems and processes but also It requires managing the employee reactions that accompany any organizational change. For the smooth implementation of change, the management should ready the organization to change by creating a culture of change acceptance.However, a number of traditional organizational design tend to discourage and not encourage change. Therefore, when such organization are encountered with a need of a episodic change, as the first step, they are compelled to transform themselves into organizations that are "ready to change". In relation to continuously changing organization, one thing that we cannot ignore is its agility and capacity to embrace change. A continuously changing organization may seem to be a perfect candidate for an unplanned change . Hence a flexible, self-organizing and adaptable organization who consider change as constant will do well during continuous change as well as episodic changes due to their change readiness.


Also, episodic change and continuous changes cannot be considered as mutually exclusive. Although only transformational changes characterized by episodic change is able to push organizations into the next growth stage, evolutionary change characterized by small continuous changes is vital for providing the base for any kind of transformational change. It is therefore doubtful that without appropriate evolutionary changes there is a base for the support and facilitation for the culminating transformational change . As a result, one can see that large organizational transformations are accomplished via continuous change .

To survive in today's rapidly changing environment, organizations have to develop an ability to continuously change. Thus the long-term corporate strategy to keep up with the fast-moving pace of change relies on flexible organizational structures, culture and employee commitment to continuously adapt to these small evolutionary changes, probing for opportunities which can lead to a transformational change. Both small and large organizational changes are becoming the norm within organizations. In other words, successful strategy is about managing continuous change.This does not mean the end of the occasional episodic transformations compelled purely by external forces like political crisis or an acquisition for example. However, one cannot view these two changes in isolation. Episodic change theory provides a definable and measurable processes for driving change at the macro level of the organization, whereas continuous change theory provides an understanding of the inherent dynamic processes that effect change at the macro level. Linking both perspectives provides the organization with a more complete picture of the same phenomena, not as mutually exclusive.


References

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