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Alternative Change Tactics. Incremental Radical Change Change Revolutionary Unnecessary “Fit” Tactics Pain
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Alternative Change Tactics Incremental Radical Change Change Revolutionary Unnecessary “Fit” Tactics Pain Evolutionary “Fit” OK if plenty of time
Change Tactics Multi-organization Multi-processes Single Process FOCUS OF CHANGE Transformational Incremental (Radical) Evolutionary SPEED OF CHANGE Revolutionary NATURE OF CHANGE
Examples of Radical Tactics Analysis/Design Phase - Use of Outsiders Consultants employees with no “old” process knowledge executives from outside - Collocate and isolate the design team Little communication to non-team members - Experiment with new structures Self-managed/empowered teams Teams managing teams
Examples of Radical Tactics Pilot Phase - Co-locate/isolate the pilot team Limited communication to broader organization - Open a distant, greenfield location Implementation Phase - Firm milestones established for deliverables
Design may be radical but implementation is incremental Reengineering is a DESIGN activity
Alternative Change Tactics Design/pilot assuming a clean slate. Revolutionary change tactics. Implement assuming existing state. Evolutionary change tactics.
The Use of Revolutionaryand Evolutionary Tactics of Change Energy Employed Revolutionary Evolutionary Tactics Tactics Analysis/ Pilot Implementation Design PROJECT PHASES Source: Stoddard and Jarvenpaa, 1995
Senior Management Supportby Project Phase Recommended situation Typical situation High High Low Low Analysis Pilot Implementation & Design Analysis Pilot Implementation & Design
Communications Recommended situation Typical situation High High Comm. Breath and Depth Low Low Analysis Pilot Implementation & Design Analysis Pilot Implementation & Design
Design can be mandated Implementation must be owned Design Implementation may involve redesign
Change Levers - Leadership - Employee Involvement - Communication - Need for the Transformation - Milestones - Culture/Structure
FOLLOW-UP Jan 2000 Launched Medtronic.com (vertical portal) Partners: Microsoft, IBM, WebMD Within 18 months data from anywhere Feb 2000 Created E-business Center to manage its Internet strategy ($230M in 3 years) Mar 2000 Medtronic, J&J, GE Medical Systems, Baxter, and Abbott announced a global healthcare exchange
THE PRIMARY OBJECTIVES OF THE MEDTRONIC CASE STUDY WERE: 1. The role of CEOs in transformation initiatives. 2. The approaches to transformation: analysis, design, and implementation. 3. The value of IT in transforming a company. 4. Successful transformations requires involvement and participation of all levels. 5. Businesses can be transformed, but long-term benefits need to encompass communication systems and the sharing of intellectual assets.