Making sense of organizational change: the role of communication

1. Making sense of organizational change: the role of communication Inger Stensaker, NHH EUPRIO conference June 14, 2008

2. Organizational change • Large-scale planned change occurs more frequently • Demands flexible processes and people • More chaos, uncertainty and ambiguouity in many organizations What is the role of communication in the context of frequent large-scale change?

3. Triggers of change • External triggers • Economic & political developments • Globalization • Technological development • Changes in the competitive arena • Crisis and shocks • Internal triggers • Poor results • Trends • Change • In higher education: • The Bologna process • Increasing focus on • visible measures • Structural changes

4. Example og change triggering more change:Strategic responses to the Norw. Quality Reform

5. Many organizations pursue a multitude of changes New changes are introduced before previous changes are completed Many changes take place at the same time TIME

6. Reactions to multiple changes Active coping mechanisms SABOTAGE We continue our work as we used to and make fun of it (the change program) TAKE SELF-CONTORL EXIT The manager has not had time to take care of the group at all. We have more or less found the way ourselves. …We have called a meeting with our superiors… In this process a number of highly qualified employees leave and find work elsewhere. Often it is the best people who choose to leave. Change improbable Change probable BOHICA LOYALTY There seems to be a tendency that people choose to bend over thinking that it will soon pass… After a while you do not give a damn. I used to be involved, but nothing came out of it…The third time, I told them that I don’t want to take part anymore. Our work load has increased as a result of these (changes). It gets harder to stay motivated. People worked more and more and as time went by I could no longer abide by the labor laws. PARALYSIS It gets messy, frustrating and too much to cope with. In the end your body doesn’t function..and you just float along… Passive coping mechanisms Stensaker, Meyer, Falkenberg, Haueng (2002)

7. Key challenge during change Ensuring a shared understanding of • WHAT to change • WHY do we need to change • HOW to change

8. What you see depends on where you sit Top manager: change agent Makes strategic decisions Middle manager: Change recipient and agent Implements change (or not) The quality reform is about high quality teaching & research The quantity reform is about more teaching and counting Employees: change recipient Implement change (or not)

9. Sensemaking perspectives on change • Surprise & confusion trigger sensemaking • We try to understand what is going on by producing ”accounts” • Featurs of sensemaking • Retrospective • Cognitive process • Social process • Middle managers & employees are often left to make sense on their own • Searching for cues – any old map will do • Top managers as ”ghosts” • Employees only see the backs of their superiors

10. SM processes lead to convergent AND divergent activities • Convergent response • Divergent response • Unresolved sensemaking • Creative response • Non-compliance Facilitating and supporting sensemaking is essential during change

11. Sensegiving An interpretive process through which actors influence each others sensemaking through persuasion or evocative language. • Used by: • Organizational leaders • Other stakeholders, such as middle mgrs & employees • Sensegiving is enabled by: • Duscursive ability: expertise & legitimacy • Opportunity; routines, practices, structures • Leaders will not engage in SG if • They perceive the changes as outside of their area of expertise • The changes affect less important parts of the organization

12. Sensegiving opportunities • Information meetings • Use of experts • External communication • Documents, analyses and reports • Meetings, work group, task force • Participation in decision making & process planning • Everyday activities • Informal talks & meetings • Role modelling What we have spent years on analyzing and understanding, we expect our employees to grasp during a few months.

13. The role of sensegiving & communication is to increase change capacity How managers mobilize for change Change capabilities Operational capabilites Employees reactions to change

14. Organizations with extensive change-experience face other challenges • Reactions • Less emotional, but also less enthusiastic • Change fatigue and*/or change capable • Balance between change and daily operations • Loyalty issues • Implications for change mgmt & sensegiving • Focus on protect and stimulate • Do not overload with information • Trust in process, don’t need vision • Trust in information, don’t need as extensive involvement Requires different approaches to sensegiving

15. Large-scale organizational change brings uncertainty & ambiguity People at all levels in the organization try to make sense of what is going on and what the future will bring Sensegiving occurs downward and upward and sideways SENSEGIVING PLAYS A CENTRAL ROLE IN DEVELOPING CHANGE CAPACITY Change novice: think multiple channels & active involvement! Change experienced: avoid overload & think protect! Conclusions