The role of Change Agents in an IT services corporation: A
systems approach to developing a strategy for improvement.
Chris J. Rowland
IBM Global Services Australia,
Level 5, 360 Elizabeth Street, Melbourne, Vic. 3000, Australia.
Telephone : + 61 3 92037411, Facsimile : + 61 3 96934483
E-Mail : chrirowl@au1.ibm.com
Abstract
This paper proposes a strategy for improving the role of Change Agents in a process
of strategic business transformation in a large IT services corporation. An initiative
to use Change Agents (CA Initiative) in this company is perceived to be operating
below its potential. Two issues were identified as root causes of the problem. The
issues were based on assumptions about how the CA Initiative may be viewed in an
organisational and service-oriented context. The first issue was focussed internal to
the initiative and relates to its purpose and principles of operation. The second issue
was focussed externally to the initiative and highlights the need to understand the
environment in which Change Agents market and deliver their services. An action
research case study, using the Soft Systems Methodology was conducted to identify
how this complex problem could be improved. The research process was also aimed
at testing the validity of the models used and underlying assumptions made to
describe the CA Initiative. The application of systems thinking in the action research
process has provided a collaborative and holistic approach to understanding the
problem situation. Furthermore, it has provided a basis for assisting in a process of
identifying sustainable improvements to a corporate wide complex problem.
Introduction
Information Technology Corporation’ (ITC) was established in 1994. For the first
time it has developed a Strategy and Execution Plan and is in process of implementing
this plan. ITC has trained and established a network of Change Agents from all levels
of the organisation to assist in a corporate wide effort of strategic business
transformation. Approximately 70 employees from a business unit of ITC were trained
as Change Agents. Change Agents were required perform this role in a small part-time
capacity. After commencing the initiative in early 1998 the Change Agent Initiative
within the business unit of ITC is now perceived to be operating below its potential.
Furthermore, the initiative is also perceived to be of insignificant operational value to
project management and staff of the ITC (who for some Change Agents are the
customers of the initiative). The ITC organisation has over 3000 employees and is the
software delivery arm of an organisation which has been out-sourced from another
corporate communications company. A key element of the implementation of this IT
out-sourcing strategy is based on the view that the ITC is a value centre (Venkatraman
& Loh, 1993: 1-20). It is currently intensely focussed on implementing processes to
demonstrate software development maturity according to the software process
Capability Maturity Model (CMM) (Paulk, Weber, Curtis & Chrisiss, 1998 : 10, 40).
' For the purpose of confidentiality a ficitious name has been used for the company concerned.
Rowland, C. J.
In response to the growing concerns of the Change Agents in ITC, a core group of
Change Agents (hereafter referred to as the research team) instigated an action
research case study. Given the complexities of the problem and the need for a
participative approach, the research team employed the Soft Systems Methodology
(Checkland & Scholes, 1990: 23-24) to explore how the situation could be improved.
Although the research is still progress, this paper describes the root definition
(Checkland & Scholes, 1990: 23-24) which was developed for the issues of concern
during stage three of classical SSM process. The research team has referred to the
root definition as the proposed strategy for improving the issues of concern.
Research assumptions
The action research case study has made the following assumptions :
1. The network of Change Agents created by the CA Initiative is an organisation of
some form. This organisation can be characterised by some form of paradigm of
operation (Constantine, 1993: 35). Hereafter this will be referred to as the CA
Organisation.
2. Change Agents are service providers and therefore, the Change Agent organisation
may be viewed as a service based organisation. That is, Change Agents do not
exist for their own personal and professional development but to primarily be off
service to a customer.
3. The market in which Change Agents deliver services is the area of business
(environment) in which Change Agents operate in their near to full-time capacity.
Their customers may be internal or external to ITC and may exist at any level of
these organisations.
4. The CA Organisation is operating in a competitive environment. That is, the CA
Organisation is competing with other providers of alternative or new (equivalent)
services from other organisational entities, functions or initiatives.
5. The type of change facilitated by Change Agents is largely dependent on their
official position (function) in the organisation or what is in their influence or
control. That is, Change Agents in projects servicing short term needs of their
customers will primarily be involved with operational changes. Change Agents
servicing the long term needs of their customer (including opportunities to create
competitive advantage) will largely be involved with tactical or strategic oriented
change.
6. Any employee of ITC who is not a Change Agent is a potential customer of the
corporate CA Initiative. This includes line managers of Change Agents and peers
of Change Agents. (This raises an interesting question as to how appropriate is the
belief which is shard by some employees of ITC, that all employees are Change
Agents !)
7. Change Agents are relatively more informed about ITC’s strategy and will use that
information to provide context to the type of change they facilitate. Accordingly,
the degree of coupling with operational change will be relatively less than that
which is tactical or strategic in nature.
8. The CA Organisation operates as a cost centre. That is, it does not have direct
financial profit making objectives.
9. Change Agents have a minimum standard service offering for its customers : To
share ITC strategy, be conduits for two-way unfiltered feedback to senior
management and to identify improvements and suggestions to business issues.
Rowland, C. J.
10. The scope of Change Agents services is driven by the strategic business
transformation process. That is, ITC's strategy and strategic change associated
with the implementation of this strategy is the immediate cause for the need for
the Change Agents Initiative.
The study will attempt to test the validity of the above assumptions through an
exploratory action research process. The two issues on which the study has been
based will now be discussed. The issues and their corresponding models are based on
the above assumptions.
The CA organisation
is lacking an
organisational
5. Protocols ? identity !
3. Policies ? a
1. Purpose ?
2. Principles ?
4. Processes ?
6. Procedures *?
Effectiveness ?
Efficiency ?
Ethical
Efficacy ?
Diagram 1 : The CA Organisation in ITC is lacking a description of its
characteristics and function (6 P's).
Root cause issue 1
The first root cause issues is, "The CA Organisation in ITC is lacking a description of
its characteristics and function". The model illustrating this root cause issue is shown
in diagram | and attempts to highlight that it is not clear for the CA Organisation :
e What is its purpose for the existence. That is, what objective is to be attained or
what is the intention of Change Agent actions in the initiative?
¢ What are the principles under which the organisation should operate. That is,
what are the moral rules, shared beliefs or agreed motives by which Change
Agents conduct may be guided?
¢ What are the policies which govern behaviour and decision making with respect to
the internal operation of and delivery of services from the organisation (Paulk, et
al, 1998: 361, Robbins, 1988: 105). That is, what guiding rules and parameters
should be adopted to influence and determine the decisions and behaviour of
Change Agents?
¢ What are the processes, procedures and protocols which are required to support
day-to-day operations of the organisation.
Rowland, C. J.
What alternative services are competing
with CA’s?
The CA Hy How does this demand/presence affect
organisation g the program ?
. 3
inITC! =
=
Policies
¥ =— Who is the
Who is the Principles j
: ne customer and
supplier 7 Sapplie® Protocols Customer, What are their
How does this Procedures needs ? How does
demand/presence Peasesies this demand/presence
affect the program ? affect the program ?
4
g
What new services
2309 What internal rivalry exists
are competing with CA’s
How does this demand/presence affect between Change Agents
; and others in the
the program ? ~~
organisation ?
syuesyua
Diagram 2 : The market (environment) in which the CA Initiative operates.
Root cause issue 2
The second root cause issues is, "The CA Organisation in ITC is not perceived to be
delivering value to its market (customer)". The model illustrating this root cause issue
shown in diagram 2 and attempts highlight that it is not clear for the CA Organisation:
What is the scope of its market?
Who are its customers?
Who are its suppliers?
What alternative services are competing with those by the CA Organisation?
What new services are competing with those offered by the CA Organisation?
What rivalry exists between Change Agents and other participants of the
initiative?
¢ How it is affected by the presence and demand of the above forces?
(Porter, cited by Frenzel, 1992: 45)
The strategy for improving these issues has been based on the CATWOE model :
e Customers (Beneficiaries and Victims) ¢ Worldviews (Why is or why is the
transformation not important?)
e Actors (Participants) e¢ Owner and Sponsorship
e = Transformation (Current and e Environmental constraints
Improved Situations)
(Checkland & Scholes, 1990: 37); (Wilson, 1984: 25)
The research team has chosen to frame this body of work as the “Strategy for
improvement”. The strategy will now be discussed and supported by key references
from a literature review.
Rowland, C. J.
A strategy for improvement
At the core of the strategy for improving the issues of concern, is the need for a
business transformation. The components of a transformation or root process
definition (Checkland & Scholes, 1990: 31) analysed and developed by the research
team is illustrated in diagram 3.
Environmental System
Constraints | (Environment)
* Current Boundary
Situation *
Why this transformation is
percieved to be important Gorpureie
to the business ! ‘Sponsor
“ Participants
(human resources)
required by the
Why this transformation is seine Haas
NOT percieved to be important to
the business ! ‘Transformation
(local resourcing
a authority)
Environmental Improved
Constraints ! Situation
Environmental
Constraints !
Custome!
(im mediate benefi
the transform
Customer
(immediate victims
of the
transformation)
Diagram 3 : The components of the system under study.
Transformation
The description of the transformation involved has two parts; the current situation and
the improved situation. The overall transformation has been uniquely described as,
"Establishing a clearer identity for operation and a marketable service offering for the
CA Organisation". The problem of operational identity reflects the need to address a
problem internal to the CA Organisation, whereas the need to provide a marketable
service offering addresses a challenge which lies in the environment external to the
CA Organisation. The latter primarily refers to the environment in which the Change
Agents operate in their near full-time capacity, ie in their core day-to-day project
(functional) teams. Diagram 4 illustrates the proposed transformation.
The current problem situation - an internal perspective
Fundamental to the problem is that there is no documented statement clearly defining
the purpose of existence of the CA Organisation. Furthermore, there is no value
system which reflects the principles (Checkland & Scholes, 1990: 44-51) shared by
the Change Agent community and the organisational paradigm characterised by this
organisation (Constantine, 1993: 36). The absence of documented policies which
govern acceptable behaviour and decision making in the CA Organisation, has led to
disillusionment on and disagreement about what Change Agent work should be done.
A question often asked is, "What is the scope of things that should be addressed by
Change Agents?" There are many cases where Change Agents do not know what they
are supposed to be do or what their core roles are despite a corporate wide Change
Agent training program. Some Change Agents are searching for a structure and
Rowland, C. J.
direction and to dismiss some of the uncertainty. This suggests that some Change
Agents prefer to operate in a traditional hierarchy organisational paradigm
(Constantine, 1993: 36). Do Change Agents need a statement of requirements for what
the customer wants? In the absence of knowing what resources are available Change
Agents are unable to perform to expected levels, irrespective of whether the
expectations of their peers or customers of their services are realistic (Schary, 1992:
342). Given that the roots of the CA Initiative is in a corporate wide strategic business
transformation initiative, it is a constant challenge for Change Agents to balance a
strategic and operational demands - each which calls for a different mindset, set of
behaviours and as Change Agents have experienced a conflict between strategic and
operational priorities and timeframes.
The market ( industry)
The CA Organisation Alternative services ? Information Technology Corporation
in the ITC ITC’s customers
organisation
The CA Organisation
is not perceived to be
The CA Organisation
lacks Suppliers ? 1p delivering value to its
craatestional 2 Irn? Customers 2 customer (market).
arial Seiad The customer
ve is not clearly defined?
aide New entrant services ? Current
Situation = — Situation
Improved Tapered
Situation Alternative services Situation
Marketing Action Plan :
Defines the customer.
se «Promotion,
‘The CA Organisation Suppliers Lee sProducts & Services,
has a more clearly 2. Customers ‘Place of delivery,
defined organisational Sie *Price & Costs
identity : aes
*Purpose, Principles, The Ch Organon
"Poli : is perceived to
Policies, Rivces New entrant services F
“Protocols & Procedures be delivering value to its
customer (market).
Diagram 4 : The proposed transformation defined in the strategy.
The current problem situation - an external perspective
Independent to the fundamental internal issue with the CA Organisation there is an
apparent need to define who is its customer. There is also a need to communicate a
consistent message to the target market (customer) at the right time and the right place
of what services are being offered by Change Agents. Integral to this effort is the
need to create greater visibility and credibility to promote the successes of Change
Agents to-date. The CA Initiative has engaged Change Agents in a process of
assisting line management in sharing the businesses strategy and execution plan. As a
result of this, Change Agents have a better understanding of the strategic direction
than their managers. Effective communication channels don't exist and therefore this
information has not been communicated to ITC managers in a timely manner.
Consequently operational management and Change Agents do not share a common
understanding of the strategic direction. Change Agents are also not communicating
effectively with management in order to understand their needs (Schary, 1992).
Integral to the CMM implementation process is need to institutionalise sustainable
Rowland, C. J.
work practices (Paulk, et al, 1998: 10,40; Cummings & Huse, 1985: 477-485).
Change Agents perceive that their customer view the process of institutionalisation in
a very logical and hard manner. It also appears that the customer does not appreciate
why institutionalisation interventions (Cummings & Huse, 1985: 477-485) deal with
complex soft problems and that they require high orders of diagnosis and learning.
This is another opportunity where Change Agents services can add value to their
customers.
The improved situation - an internal perspective
The CA Organisation will have a more clearly defined organisational identity. In
particular the purpose, operating principles and policies governing behaviours in the
CA Organisation will be defined. Furthermore, the clarification of day-to-day
processes and procedures will provide the necessary support for consistent and timely
delivery of Change Agent services. This will give Change Agents a better
understanding of their role which will support them to act with confidence and
understanding. The processes developed will recognise senior management's need for
a standard process of communication and two way unfiltered feedback. It is
anticipated that by having a clear and effective communication between Change
Agents, where a common vision exists, it will create a network of resources which is
more productive. A climate will be created which involves Change Agents in a unified
and collaborative manner which will lead to a dynamic culture of improvement. In
this situation Change Agents will attempt to retain stability in response to dynamic
change in a very inherent complex system. This is an example of homeostasis
(Overman Loraine, 1994: 5; Schoderberk, Schoderberk, & Kefalas, 1990: 29). It is
inevitable that this will lead to increased motivation and a greater desire of untapped
passion for Change Agents to exceed their personal bests. An informal and fluid
organisation of Change Agents who share an understanding of needed behaviours and
rules of operation is likely to also emerge.
The improved situation - an external perspective
The customer of the CA Organisation will be defined. Change Agents will know who
is the customer, what are the needs of the customer and what services must be
delivered (Schary, 1992: 342). Change Agents will know who are their customers and
will be able to better meet their expectations. The scope and target market will be
clearer. The strategy for how Change Agents deliver services will be based on a
Marketing Action Plan. This plan will outline the appropriate marketing mix (Baker,
1985:175) to promote the CA Organisation's identity and service offering. The
marketing plan will target the customer base with the right message in the right place
at the right time. The marketing plan will designed around the strengths and
weaknesses of the CA Organisation. It will also consider the opportunities and threats
of the strategic forces illustrated in diagram 2. Opportunities will emerge from within
the Change Agent customer's organisation which will create a demand for Change
Agent services. An example of this is where Change Agents support the customer in
the implementation of a High Performance Service Culture. This role extends beyond
the need for Change Agents to have good operational understanding of the strategy
and draws on other strategic initiatives and knowledge. Integral to the marketing
effort will be the communication to all customer staff and management of who and
what Change Agents have to offer.
Rowland, C. J.
Transformation participants, owner and sponsor
The participants, owner and sponsor for the proposed transformation are illustrated in
diagram 5. Given the large scale of the organisations involved there are two key
management roles which will be required to support the implementation of the
proposed transformation (strategy for improvement) :
e ITC Director of Operations (DoO) : The sponsor and person responsible for
operationalising the CA Initiative. The DoO has taken over the responsibility
from the ITC GM Strategy and Market Development who was the instigator of the
initiative.
e ITC General Manager : Customer of the initiative. A senior manager who will be
required to fund Change Agents services. This is required in addition to DoO
sponsorship in order to provide local (operational) management support.
The following participants have been also identified as integral to the transformation
process. The reasons for their involvement are also stated :
¢ Change Agent Support Team : A informal group of Change Agents in ITC who
serve as a support network for all ITC Change Agents.
e ITC Director of Operations: To assist in marketing effort with senior ITC and
customer management. Approve recommendations from research team.
e ITC GM Strategy and Market Development : Evaluate the performance of the CA
Organisation in light of corporate strategic and marketing objectives.
¢ Middle level managers in ITC: Customer managers internal to ITC who will assist
as local champions for micro _ initiatives. Provide a means to test
recommendations.
e¢ Change Agent Issue Management Initiative Team: The formal organisational
identity for the action research team. Lead team of change agents.
¢ Change Agent Initiative Project Manager : Assist in the implementation of a
communications plan.
e ITC Project staff : Customer staff internal and external to ITC who define the
services required from Change Agents.
¢ Software Engineering Process Group Representatives (SEPG): Are these
customers or competitors of Change Agents? The SEPG representatives are
subject matter experts in the area of CMM institutionalisation and
implementation. These staff will provide expert advice in local software process
engineering and improvement initiatives.
¢ Change Agents in ITC: Assist in the implementation of macro or micro initiatives
from the research.
e ITC Business Transformation Team : Incorporate recommendations in the current
Change Agent training design and delivery initiatives.
Rowland, C. J.
Corporate
“Current Situation “
Sponsor
ITC Director
of Operations.
Change Agent Tc ITC Board.
Support Team Director of
Operations
Some middle penne
level managers Chanserxsent Te
! ange Ag CA Program 9
in ITC Issue Management Project General Manager
{TC Business Initiative Team Manager
Transformation ITC Project
Team Change Software Engineering staff
Agents in ITC Process Group
Representatives
“ Participants owner
(human resources) (local resourcing
required by the authority)
transformation ?
Transformation
“Improved Situation “
Diagram 5 : The proposed participants, owner and sponsor of the strategy.
Participant's worldviews
In addition to appreciating why participants perceive the importance of the
transformation, the research team also recognised the need to also appreciate why
participants thought the transformation was not important. This gave the team
insights to the potential areas of risk and weaknesses in the strategy, particularly with
respect to obtaining buy-in from participants. The worldviews also served a very
powerful role in promoting the benefits of the transformation with stakeholders,
customers and sponsors of the transformation. This was vital to the effort of obtaining
management buy-in to the improvement process and associated recommended action
plan. An appreciation of the differing perceptions created an awareness of where
staff's view may be in support of corporate principles and policies. The team was
overwhelmed with the degree of how many Change Agents perceived that they didn’t
offer any commercial value. Diagram 6 illustrates how the participants worldviews are
represented in the system under study. The worldviews of participants also offer basis
for testing the validity of the research assumptions outlined above.
Why is it important - an internal perspective?
The CA Initiative is a form of organisation. In order for it to grow, develop and serve
its market (customer) competitively as an organisation it is important for it to have an
understood, shared and defined paradigm of operation (Constantine, 1993). This will
assist in developing a shared set of operating principles. A value system which is
representative of the shared beliefs (Rouse & Watson, 1993:4) of Change Agents and
paradigm of operation will also be realised. Clarification of purpose and operating
principles will set the foundation for establishing an appropriate set of policies
(Robbins, 1988: 105; Constantine, 1993; Paulk, et al, 1998: 361). The policies will be
tailored for the organisational paradigm and purpose of existence. The policies will
improve Change Agent morale and encourage Change Agent participation in the
corporate initiative or any self-initiated activities. Accordingly, Change Agent services
Rowland, C. J.
can be better directed to facilitating change within their influence and control.
Addressing this problem will assist in reducing wasted effort and disturbances from
uncoordinated Change Agent activity. A clearer explanation of the role and function
of the Change Agents will assist in setting realistic expectation between Change
Agents and their customers. This is likely to assist in developing adaptive leaders
through greater visibility and credibility of value added services, people influence and
team work (Ezzamel, Lilley & Wilmont, 1993:99; Shareef, 1991: 60).
Why is it important - an external perspective?
By working within an agreed framework of principles and policies it will assist
Change Agents to communicate a consistent message and deliver a quality service to
their customers. This will improve the relationship between Change Agents and their
customers and will assist in shaping realistic expectations of Change Agents (Schary,
1992: 342). Improvements to the relationship between the CA Organisation and its
customers will also increase the perceived value of the services offered by Change
Agents (Sawyer, 1995: 78). The strategy proposed by the research team recognises
that the customers mindset needs to be challenged to see the potential of having
Change Agent as part of their on-going business. This is similar to the challenge of
convincing the customer that quality in the work that a supplier does is integral to the
delivery process and not an optional extra. Change Agents can offer their services to
assist the customer in institutionalising (Paulk, et al, 1998: 10,40; Cummings & Huse,
1985: 477-485) CMM work practices in project teams. This intervention requires an
appreciation of the key practices of the CMM model. These practices are a structured
approach to creating a mature project culture based on software process improvements
(Paulk, et al, 1998). Change Agents are equipped with the competencies to add value
in the planning and implementation activities in this area of their customer's business.
A challenge facing the CA Organisation is to recognise that the SEPG staff have line
control and full time responsibility for this area of work. Until now there has been
rivalry between Change Agents and SEPG staff of the perceived value Change Agents
can offer in this area of the business. It may be argued that the nature of activities
proposed for the institutionalisation of CMM offers a very hard and structured
approach to change, and that it maybe limited in offering sustainable change and
process improvement. Is this weakness being addressed through the People Maturity
Model (PMM) (Curtis, Hefley & Miller: 1995)? Irrespective of the potential
weaknesses and strengths of CMM and PMM, there is an opportunity for Change
Agents to add value to the current and future CMM related institutionalisation
interventions. Consequently, this will assist the customer in meeting its strategic,
tactical and operational objectives.
Why is it not important - an internal perspective?
As a Change Agent I want to do what I want and not what the organisation says I need
to do. When Change Agents work in a organisation with shared values, principles and
tules of behaviour I feel this will restrict my autonomy. Change Agents should not be
viewed as service providers and do not have a customer - they are the customer!
Change Agents don’t generate income and therefore this strategy (transformation)
deflects these resources away from other commercially viable opportunities. There is
too much focus on "Hygiene Factors" and not enough on the "Motivation factors" for
Change Agents (Robbins, 1988: 342). This type of initiative also distracts Change
Agent from other current activities. I don't see any impact on me or my job if we fail
Rowland, C. J.
to service our customers! I am happy doing nothing because I think if we ignore it,
the problem will go away. Besides, I am comfortable with the mindset “its all too
hard”. There is too much ambiguity to what we are attempting - its more art (chaos)
than science. It is clear to me that some Change Agents have clearly defined their
goals (and conflicting visions) and don’t won’t to share them with others. This kind
of disposition will hijack whatever attempts are made to work in an agreed manner.
* It will provide a clear explanation of the role and function of Why this transformation is
the CA’s. . .
* It will increase the focus of CA resources on facilitating perceived to be important to the
change. business !
+ It will reduce wasted effort and disturbances from un-
coordinated CA activity.
+ It will improve the relations between the managers of CAs
and the CAs they manage
+ It will improve the relationships between the CA community
and the management community, especially senior managers.
+ It will improve access to CA services and resources,
particularly CA communication channels.
“ Current
Situation *
Corporate
* Clarity of purpose will improve CA morale and encourage CA ‘Spode
participation in CA activities “ Participants
+ Staff will benefit from active CA activities, eg. feedback. (human resources)
required by the
transformation ?
+ Its just more talk without getting CAs providing value to
staff, management or processes. Se
* CAs do not generate revenue or customer value for the pe
investment and expense of the CA program. They divert (local resourcing
productive resources from generating revenue and customer authority)
value. “Improved
+ The activities of the few useful CAs may be incompatible Situation “
with the new purpose
+ Agreeing one direction will reduce the spontaneity and
adaptiveness of the CA's. F afin ti
« The purpose is limited to ITC , and is not relevant to or Why this transformation is NOT.
agreed by the wider CA community. perceived to be important to the
+ Some CA’s perceive that it is not an important to the DoO. busiiess?
Diagram 6 : The worldviews of participants and customers of the
transformation.
Why is it not important - an external perspective?
Customers of the CA Organisation see this as another overhead for their staff. Change
Agent services are only rendered providing that their core work is not impacted.
There is no relevance of what Change Agents do to meet profitability and productivity
targets and it appears that they do not generate customer value. Potential customers of
the CA Organisation are heavily focussed on delivery to their customers and are not
interested in internal process improvements. Management are not interested in
making the most of the communication channel and energy that the Change Agent
offer. The CA Initiative is not meant to add support to operational initiatives - only
strategic corporate wide initiatives. The focus should be on Change Agents and their
work-life balance and not deliverables and products. It is not relevant to their
customer day-to-day (operational) activities or their long-term (strategic) goals!
Customers of transformation
The research team viewed it to very important to understand who were the
beneficiaries of the strategy. This would assist in their efforts of promoting the value
of the improvement with stakeholders. It was also revealed that during the analysis of
this area there were a number of potential groups who could be threatened by this
Rowland, C. J.
strategy. Collectively the groups who immediately benefited or were threatened by
the strategy were referred to as customers of the transformation. Diagram 7 illustrates
how the customers were referenced in the system under study. This information
heightened the team's awareness of activities which could be used to minimise
resistance during the implementation stages. This also provided vital information in
the development of the Marketing Action Plan. A discussion of who are the potential
beneficiaries and victims will now be discussed.
“ Current
Situation “
Why this transformation is
percieved to be important
to the business !
“ Participants
(human resources)
required by the
transformation ?
Why this transformation is
NOT percieved to be important to
the business !
Customer
(Immediate beneficiaries
of the transformation)
Change Agents, Strategy & Market Development
Group, New graduates, SEPG Representatives,
Line managers, Staff at the coal face, Human
Resource Management, Project managers, ITC
shareholders, Customer management of ITC
projects, ITC employees, Project Teams - ITC
customer staff, Managed Operations staff, ITC
senior management, CMM Implementation
teams, ITC Strategy Solutions Group
Corporate
Sponsor
Customer
(Immediate victims of
the transformation)
‘Transformation
owner
(local resourcing
authority)
“Improved
Situation *
The Cowboys, Heroes & Wizards who are critcial to
keeping CMM LI projects off the critical path, Staff working
on projects which are not aligned with the strategic direction,
Projects/groups with their own political agendas, Employee’s
whose brains are overloaded from too much change and
information, Die hard “Don’t want to change employees”,
Employees who are not CA’s, SEPG Representatives -
overlap of duties, Contractors in project teams, Consultants
supporting the CA program and other functions of the
business, Disaffected CA’s, Slow don’t rock the boat
employees, Line management, Project Managers, Project
staff, Current “Limelight” holders - Line management &
Team member.
Diagram 7 : The immediate beneficiaries and victims of the transformation.
Immediate beneficiaries
Change Agents and potential new Change Agents are the two groups internal to the
CA Organisation who are perceived to be immediate beneficiaries of this
transformation.
Other beneficiaries external to the CA Organisation are :
e Customers of the initiative : ITC Senior Management, ITC Project Management,
and ITC Project Staff.
¢ Suppliers of the initiative : ITC Human Resources, Business Transformation
Team in ITC, Change Agent Training Design and Delivery Team, Director of
Service Operations.
¢ Customers of ITC.
Immediate victims - an internal perspective
This transformation may lead to some Change Agents feeling insecure or threatened.
In particular this may affect Change Agents who are complacent, content with having
the role poorly identified and do not have the responsibility to deliver anything. An
example of this is where a Change Agent may not be service oriented and that they
Rowland, C. J.
use the initiative as a means to serve their personal agenda only. This transformation
will raise the visibility and credibility of Change Agents and will reinforce shared
beliefs, behaviours and expectations. Consequently, there will be a sector of the
community who may be threatened by the stronger identity and newly established
customer expectations. The purpose, principles, policies and the design and
implementation of the marketing plan should recognise the impact of this group on
how Change Agents delivers their services. The CA Organisation has a cross section
of individuals whose orientation (mindset) is either predominantly operationally,
tactically or strategically focussed. If Change Agents services are to be underpinned
by ITC's strategy, those Change Agents whose focus is loosely coupled to the strategy
(ie mainly operationally focussed) may find it difficult to deliver the service in the
strategic context required. How does the research team anticipate addressing this
dilemma?
Immediate victims - an external perspective
Some Change Agents have the perception that their immediate management (customer
in this context) is insecure or threatened. This is may be based on the assumption that
Change Agents are sub-ordinates to their managers and that strategic information
should be communicated through formal hierarchical communication channels. This
is an example of where the two organisational paradigms of operation (ie the CA
Organisation and its customers) differ and cause conflict as opposed to a value added
partnership. Change Agents also are delivering services to a customer organisation
which has project cultures based on the successes from "Heroes", "Wizards",
"Cowboys" and "Firefighters". This type of organisation is referred to as a being at
CMM level one in terms of software process maturity model (Paulk, et al, 1998). This
type of culture is reactive in nature and lacks institutionalised and repeatable work
practices. This type of environment can potentially be threatened by the presence of
Change Agents services, because such services are aimed at assisting in the creation of
an environment where work practices and behaviours are institutionalised. This
includes creating a culture which is more pro-active, and one where mature process
improvements lead to sustainable change.
Customer staff working on projects which are not aligned with the strategic direction
or projects which are not part of the strategic direction may also exhibit resistance to
change. Customers working on projects which service low and diminishing markets
may also be candidates for this behaviour. Change Agents have observed this concern
with their customer projects and staff. Resistance from the customer has also
occurred in an attempt to avoid the information overload and degree of change
occurring in their environment. The converse has been observed, where there are
customers who are very fixed in their professional and personal views. In this case
these customers are not very receptable to change facilitated by Change Agents. This
may also include customer staff who are not Change Agents and view change in an
inequitable manner (Joshi, 1991). Other victims external to the CA Organisation may
be the following service providers who are competing with Change Agents in the
target market. These providers may be threatened if the customer choses the services
of the Change Agents as an alternative :
e New entrants: These are service providers who offer services equivalent to those
services of Change Agents.
Rowland, C. J.
e Alternative service providers: These are service providers who offer services
which are an alternative (but serve equally as well) to those offered by Change
Agents.
An example of new entrants to the market are the SEPG (Software Engineering
Process Group) representatives. SEPG representatives duties are process improvement
and institutionalisation oriented. The perception of many SEPG representatives is
that, given the type of work they do, they are by default Change Agents. This view is
not shared by the all Change Agents as some view them (SEPG representatives) as
agents of change rather Change Agents (as defined by the corporate CA Initiative).
Another example of this where staff who refer to themselves as Change Agents but
who have been trained as Change Agents in another company. This highlights the
potential of two competing service providers or Change Agents groups who have a
different underlying set of motivations, principles and purpose for existence. How is
the research team to interpret and deal with this situation?
An example of alternative service providers are consultants and contractors who are
recruited internal or external to ITC to assist in the implementation of new initiatives.
These initiatives require change and in varying degrees are typically resourced from
staff under formal line control.
Many of the activities undertaken by new entrants or alternative service providers are
tightly coupled with the strategic initiatives. Furthermore, it not very clear in a large
organisation where the boundary and scope of this demarcation. Accordingly, there is
a wider perception that service providers of change are not necessarily limited to
Change Agents. Recognition of this problem is very important when the research
team formulates the CA Organisation's marketing action plan.
Environmental constraints
The market in which Change Agents deliver services is the area of business
(environment) in which Change Agents operate in their near to full-time capacity.
Their customers may be internal or external to ITC and may exist at any level of these
organisations. The constraints identified are those which exist in the environment as
defined above. A greater knowledge of and information about the environment in
which the strategy is to be operationalised will assist in greater monitoring and
controlling of activities (Schoderberk, et al, 1990; Waldheim, 1991: 126).
Furthermore, managerial effectiveness of the CA Organisation can may be improved
when the environment is viewed as an adaptive self-regulating open system (Tsui &
Ashford, 1994: 93-121). Diagram 8 illustrates how the environmental constraints are
represented in the system under study.
Rowland, C. J.
Utilisation targets No strong drivers
ak Too busy
(91% of work must b bein "5
cg ONE of work must BE seting Qa behind the CA’ .
illable to customes), Stine C System
Envi " ITC Customers not 4
vironmental Lack of political aad (Environment)
Constraints't SWVY. Leadership - Boundary
Leaders are not“ Current
available. Situation: **
Why this transformation is
percieved to be important
to the business ! Corporate
i Sponsor
Participants Conflicting
(human resources) nepbrate
Why this transformation is required by the comune &
NOT percieved to be important to transformation ? pre uni
the business ! emectyes:
Transformation
Large number of people to Lack of CA participation & owner —
whom direction must be commitment ie. Lack of (ocal resourcing: sai
Gis authority) Disagreement of
conveyed (ime. interest - its not going “Improved existing CA’s, everyone
aeographical feasibility, anywhere Situation « too busy to look up
cost) Heavy customer forward - takes ti
Customers not actively deliverable focus Lack of management
stating what they want é CA's unwilling to SUPP
ohthe Cos ee c commit themselves t
(immediate beneficiaries of stoner °-—,. om ene ene
the travigfarnation) (Immediate victims deliver.
/ of the
transformation) .
; Environmental
Environmental Constraints !
Constraints ! Project financial and works program planning not
considering role of CA's
Diagram 8 : The potential environmental constraints faced by the
transformation.
The CA Organisation has a large number of Change Agents to whom direction must
be conveyed. There are different preferred means of communication and different
paradigms through which information is filtered. Change Agents are unwilling to
commit themselves to deliver services to their customers. The lack of active and
consistent participation from Change Agents is in part due to an unclear expectation
of their managers and the large variances in interpretation of the strategy. The major
emphasis by Change Agents is on what is the operational implication of the strategy
and how does it apply to an environment which is heavily deliverable and bottom line
focussed. Although Change Agents are allocated a small proportion of time to
perform their role, they often find it insufficient to perform the role effectively.
Furthermore, there are diverse levels of support given by managers to allow Change
Agent to balance their Change Agent responsibilities with their full-time
responsibilities. The lack of information technology to access a shared information
knowledge base, coupled with limited internet access to the global Change Agent
community has and will continue to limit the potential value of the CA Organisation.
The customer is too busy obtaining the financial results for the current period and is
not exploiting the services available to them to create operational or competitive
advantage. There is a large number of line managers and project managers, but few
examples of leaders in the customers environment. Many are observed by Change
Agents to lack of political savvy. The most significant constraint (challenge) faced by
Change Agents is dealing with decisions and implications which arise from priorities
which are different at an operational level to those which are set at a corporate
strategic level.
Rowland, C. J.
Conclusion
ITC has trained and established a network of Change Agents from all levels of the
organisation to assist in a corporate wide effort of strategic business transformation.
Two issues were identified as being a root cause for why the Change Agents
organisation was perceived to be operating below its potential. These issues were
based on number of assumptions about how the CA Initiative may be viewed as a
service based organisation. The SSM was applied in an action research case study to
identify how this complex problem can be improved and as a means to test the validity
of assumptions made. This paper has presented a proposed strategy to improve the
two issues raised. The strategy is the result of systems thinking stage of the SSM
process. This paper has attempted to show the value of applied systems thinking in
an action research process. A holistic perspective of a problem situation has created a
greater awareness for research team members of factors outside their current
worldviews and domain of responsibility. The research team now faces the challenge
of exploring what potential activities are required to operationalise the strategy and
how it can be monitored for business success. Another challenge facing the research
team is to complete the remaining stages of the SSM process and develop a set of
recommendations for the target culture and areas of business affected. It will be during
these stages where the current set of research assumptions will be vigorously re-
challenged. Accordingly, this will provide a foundation for identifying sustainable
improvements to a corporate wide complex problem.
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