CH-6 Vision and the Direction of Change – Managing Organizational Change: A Multiple Perspectives Approach : Book Guide

Chapter 6 Vision and the Direction of Change Learning Objectives On completion of this chapter you should be able to: •Explain the arguments for and against the concept of vision and how approaches to this issue depend on the image held of managing organizational change. •Identify the characteristics of effective visions. •Assess how the context in which a vision is developed affects its meaning. •Apply different methods and processes for developing vision. •Explain why some visions fail. •Appreciate why some visions may fade over time. •Explain the arguments concerning the relationship of vision to organizational change. Chapter Summary Effective change is often linked to the presence of a well-established vision. Conversely, a lack of vision is frequently associated with unsuccessful change and organizational decline. The image one has of managing change influences the role one expects vision to play in the change process. Vision is often confused with other terms such as mission statements, goals and values.
Images Linking Vision and Change
Director Vision is essential to producing successful change and must be articulated at an early stage by leaders.
Navigator Vision is important but can be compromised by competing visions of different stakeholders.
Caretaker External forces shape the change process, and vision rarely has a major influence.
Coach Vision emerges through the leader’s facilitation skills, shaping agendas and desired futures.
Interpreter Vision articulates the core values and ideology that underpins the organization’s identity.
Nurturer Visions are always temporary, emerging from the clash of shifting and unpredictable forces for change.
The content of meaningful vision has sparked considerable debate. Some consideration has been given to attributes, its style, and how it is differentiated from mission and organizational values. Selected examples of these from the text are: An effective vision is said to have: •A cognitive component – focusing on achieving outcomes. •An affective component – helping to motivate people and increase commitment to the change. Generic characteristics of vision may include: •Possibility •Desirability •Actionability •Articulation The internal capacity of members of the organization to resource the change and accept the need for change affect the vision and the reaction to vision. Three components of vision are: •Why the change is needed •The aim of the change •The change actions that will be taken Visions as Stories: Creating vision stories allows a vivid description of the change to which people can relate. Levin maintains that stories are more effective than simple vision statements because people can imagine themselves and their actions in the future Relationship of Vision to Mission and Goals: Vision is often confused with other terms such as mission statements, goals, and organizational values. All these terms refer to something that provides direction and identifies change actions that are needed. Goals and objectives refer more to results that are desired without necessarily referring to the actions needed to achieve this. Whereas vision usually paints a picture of the future and is inspirational, mission statements are more purposive and instrumental in outlining what needs to be done. Relationship of Vision to Market Strategy: Some writers argue that if they are to create competitive advantage, vision and strategy must be unconventional, often counterintuitive, and differentiated from those of other companies. It has been argued that having a well-specified market vision such as this helps to identify how the company will grow and compete. How Context affects Vision 1. There are four organizational contexts in terms of their ability to produce visionary change that should be considered. These are: a. Rigid organizations are classified as those that have little in the way of available resources and lack acceptance of the need for change. b. Bold organizations have low resources but high acceptance of the need for change. They are characterized by more organic structures and being less rule-bound. c. Overmanaged organizations have high resource availability but little acceptance of the need for change. Associated with a more stable environment and dominated by past practices that are seen to have worked well and to remain relevant, they are limited in their ability to accept the need for a new vision. d. Liberated organizations are those where visionary processes are likely to be most successful. 2. A vision will “take” in an organization depending on whether there is a contextual “trigger” that alerts people to the need for a new vision. 3. The national and cultural context in which the organization is embedded is also important. Processes by which vision emerges There are a number of approaches to creating vision which include: •Crafting the vision: this can be leader-dominated, pump-priming or facilitated. •Questions that help to develop a vision: this can be done through an intuitive, analytic or benchmarking approach. •Connecting the vision to the organization’s inner voice: this connects the vision to the underlying values and beliefs that are held within the organization. Visions fail for a number of reasons including being too specific, too vague, too unrealistic, or just inadequate. A vision must be able to adapt over time; dominant visions will be those that outlast others that may be present within the organization. There are three key debates that link vision and change. •Does vision drive change or emerge during change? •Does vision help or hinder change? •Is vision an attribute of heroic leaders or of heroic organizations? Is Vision an Attribute of Heroic Leaders or of Heroic Organizations? •Vision Is an Attribute of Heroic Leaders: Some writers claim that successful strategic organizational change will only occur when it is led effectively. The vision has to be clear, compelling, challenging, and credible—it also has to be reflected in the expressions and actions of the leader who is articulating it. Charismatic leaders secure images in their followers and enact their visions through four processes: •Framing is the art of managing the meaning of followers, getting them to accept the vision’s interpretation and meaning by stressing its importance and aligning it with followers’ values. •Scripting extends framing, building upon it by coordinating and integrating more specific sets of ideas and actions. •Staging is the selection of symbols, artifacts, props, and settings for reinforcing the vision. •Performing refers to enacting the vision. This occurs through exemplification of required behaviours and promotion of themselves and their vision. •Vision Is an Attribute of Heroic Organizations It is a visionary company that will last the distance, irrespective of its leadership. Vision consists of a core ideology which defines what the organization stands for – it becomes the core purpose and envisioned future of the organization. Sidebars in the Text The following table provides a brief summary of the key points in each sidebar.
Sidebar Page
The Coca-Cola Company Vision •Placed at the start of the chapter so that right from the beginning students have a clear example of a vision that they can relate to. 172
What Makes an Effective Vision •Presents the rationale for having a vision 175
Vision Statements from Fortune 100 Companies •Exposes students to a range of vision statements •Provides a good range of examples to assess against the characteristics of effective visions provided in Table 6.3 (p.177). 178
Purpose beyond Profit •Introduces the idea of purpose 185
Purpose-Driven Leadership •Proposes that clarity on purpose underpins a capacity to have a clear statement of vision. 186
Be Specific •Citing former P&G CEO, Alan Lafley, this vignette argues the case for backing up the vision statement with some specific details on what it means at the operational level (relating actions to vision). 187
A Lack of Shared Vision? •Provides a humorous story intended to make the point that that the lack of a shared vision can have unfortunate consequences. 188
Lou Gerstner on Vision •Tells the story about a former CEO of IBM, Lou Gerstner, who was often (mis)quoted as being dismissive of the role of visions. The point Gerstner was making was not that visions aren’t important, it was that once an organization has a vision, priority must be given to operationalizing it (execution). •Challenges students to be sure of their reason(s) for arguing that the development of a new vision is required rather than effective execution of the current vision 192
The Complete Vision at Merck •Merck is a good example of an organization that has a “complete vision” which encapsulates the core ideology and an envisioned future. •This is an example for students to use for comparison with vision statements from other organizations (see Exercise 6.2) 196
Exercises and Answers EXERCISE 6.1 (p.197) Interviewing Change Recipients Purpose This exercise is designed for students to gain an understanding of the range of perspectives employees have on the link between vision and the process of change. The aim is to broaden students’ knowledge about the role of vision in producing change, and the different reactions of recipients of change to vision and vision statements. Options/Techniques/Requirements Format: •Individually or in groups of two students Materials: •a few vision statements for students to give as examples while interviewing (if needed) if employees are not sure what a vision statement is. •students should have a copy of the vision statement for the company the employees work for, as some employees may not know the vision. Time Required: The longest time for this exercise will be spent in organising and conducting the interviews. Each interview, once arranged by the student, will take about 15 to 20 minutes depending on the level of information the employees have about a change. The time required after the interviews are completed is approximately 30 minutes, unless the exercise is to be submitted for formal assessment. Undergraduate: Students may need help in gaining access to employees due to their limited professional experience. It would be preferable for these students not to try to interview employees in a company where their contact is through a manager or owner, as the employees may feel pressured to give the “right” answer, and be concerned about a lack of confidentiality. MBA/Executive: Students with professional experience are likely to have enough contacts to be able to readily find employees to interview. It may be better for them to approach someone outside their own company as employees in their own company may feel pressured to give the “right” answers. Potential Problems and Helpful Hints •Depending on the way that the interviews are approached, there could be some issues of confidentiality where employees are concerned that the information will be presented to others in the company and this will affect their employment. Students will need to comply with university ethics regulations and the instructor should outline these to students. •Students need to make sure that their comments and questions are kept in everyday language as appropriate for employees (and the industry) they are interviewing, and not use jargon. •Students may feel that an interview was unsuccessful when an employee didn’t know much about the change situation. The information from this situation is very useful as it tells a lot about the internal communication system in the company and the structure of the change. Students should be encouraged to assess this type of response from “What would you expect an employee in this position to know?” •Undergraduate students may find it difficult to gain access to a number of employees from the one company. Debriefing The emphasis in this debrief is on the way the change and vision was seen from the employees’ perspective. Students should be encouraged to consider employees (aka the recipients) when managing change, as employees are the ones that can “make or break” a change. Students should be encouraged to think through the implications of vision for managing organizational change and strategies that they might utilize. Guidelines for Answers to Questions The answers to the questions in the exercises will need to be assessed according to the experience and education level of the students. The answers given here are only a guide. Your task is to interview three employees; they can be in the same or different organizations. Ask them to think back to an organizational change that they experienced, and to answer the following questions: 1. Were they presented with an organizational vision about the change, and if so: • What was the vision? • What effect did this have on them? • Were they involved in developing the vision? • To what extent did the vision motivate them to engage in the change? • How central was the vision to implementing the change? Answer: Employee 1: 1. Vision: Yes, to become a market leader in sustainability. Effect: Motivated by the environmental impact. Involvement: No. Motivation: High; felt aligned with personal values. Centrality: Very central; guided all change efforts. Employee 2: 1. Vision: Yes, to enhance digital capabilities. Effect: Provided a clear focus and goals. Involvement: Somewhat; contributed feedback. Motivation: Moderate; clearer goals helped but lacked detailed action plans. Centrality: Central; shaped the overall strategy. Employee 3: 1. Vision: No clear vision was presented. Effect: Caused confusion and lack of direction. Involvement: N/A Motivation: Low; unclear purpose. Centrality: Not central; change was poorly directed. 2. If your interviewees were not given an organizational vision for this change, ask them: • Would a vision have helped them to understand and become involved in the change? • How important is vision to achieving organizational change? Answer: The answers to these questions should reflect thoughtfulness on the part of students in their reporting of the interview. Any statements made should be supported by examples and explained. Employee 1: 1. Would a vision have helped? • Yes, it would have provided clarity and direction. Importance of vision? • Very important; it guides understanding and engagement. Employee 2: 1. Would a vision have helped? • Yes, it would have clarified goals and purpose. Importance of vision? • Essential; it motivates and aligns efforts. Employee 3: 1. Would a vision have helped? • Definitely; it would have reduced confusion and increased involvement. Importance of vision? • Crucial; it drives commitment and successful implementation. When you have completed your interviews, consider the responses that you have documented. What general conclusions emerge regarding the relationship between vision and organizational change? What have you learned from this exercise. Answer: Students are required to compare and contrast their responses and then make some concluding statements. General Conclusions: • A clear organizational vision significantly enhances understanding and engagement in change initiatives. • Vision provides direction, motivation, and alignment, making it crucial for successful implementation. • Without a vision, employees experience confusion and lack of direction, hindering effective change. Learnings: • Communicating a well-defined vision is essential for driving organizational change. • Involvement in developing the vision can further increase motivation and commitment. • Vision acts as a guiding framework that aligns efforts and objectives across the organization. What do you learn from this exercise? Answer: This will be a personal assessment of what the student learnt, and how they will apply this to their future approach to change management. From this exercise, you learn that a clear and communicated organizational vision is critical for successful change. It helps employees understand the purpose, aligns their efforts, and increases engagement. Without a vision, employees may feel uncertain and less motivated, which can impede the change process. Additionally, involving employees in developing the vision can enhance their commitment and effectiveness in implementing change. EXERCISE 6.2 (p.197) Analyze Your Organization’s Vision Purpose This exercise is designed for students to apply their skills to assessing the vision of an organization they are currently working in (or the university they are studying at). Using the framework from Collins and Porras (2005), they are to analyze the vision and arrive at various conclusions. Options/Techniques/Requirements Format: •Preferably individually Materials: •Vignette The Complete Vision at Merck (p.196) Time Required: This can be done outside of class as an assignment or in class time. The amount of time spent will vary depending upon whether individuals have prepared prior to class and then use the class time to compare and contrast their answers in groups. In the latter situation, at least 40 minutes will be needed for the group work. Undergraduate: Students may have some difficulty in determining the impact of the change in the organization and this could be helped by the instructor explaining an example in class time. MBA/Executive: Students with professional experience are likely to have enough experience to answer all the questions without assistance from the instructor. Potential Problems and Helpful Hints •No real issues Debriefing The debriefing should ask students to give their opinion of the approach to assessing a vision using the framework of a core ideology and envisioned future. Some examples could be given in class, and students asked for comments. Ask students to work out a vision statement for the class that would capture the aspects of this approach. Guidelines for Answering Questions The answers to the questions in the exercises will need to be assessed according to the experience and education level of the students. The answers given here are only a guide. 1. Consider your own current organization or another with which you are familiar, which could be the institution where you are studying. Answer: Organization: My current organization is [University Name/Institution]. Vision and Change Experience: • Vision: The university’s vision is to be a leader in innovative research and quality education. • Change Experience: The institution recently implemented a new digital learning platform to enhance teaching and learning experiences. Effect of Vision on Change: • Effect: The vision provided clear goals and purpose, motivating faculty and students to adapt to the new platform. • Involvement: Faculty and students were consulted in the planning process, increasing buy-in and engagement. • Importance of Vision: The vision was central to guiding the change and ensuring alignment with the institution’s strategic goals. 2. Refer back to the description, from Collins and Porras (2005), of “The Complete Vision at Merck.” Identify your chosen organization’s vision in those terms: core ideology (and values), purpose, envisioned future (big hairy audacious goals [BHAGs], and vivid descriptions) Answer: Organization: [University Name/Institution] Vision in Terms of Collins and Porras (2005): • Core Ideology (Values): Commitment to academic excellence, innovation, and inclusivity. • Purpose: To advance knowledge through cutting-edge research and provide high-quality education that prepares students for future challenges. • Envisioned Future: • BHAGs: To be recognized as a global leader in research and a top choice for students worldwide. • Vivid Descriptions: A campus where innovative research transforms industries and a learning environment that empowers students to excel and make significant societal impacts. 3. Identify your organization’s vision in these terms. You may wish to do this by examining company documents, talking to others, and reflecting on your own experiences. Answer: The answer to these questions should include the vision statement and thoughtful consideration of the parts of the vision according to Collins and Porras’ model. Comments on the vision should be assessed in relation to the vision and any information that is provided by the students to substantiate their claims. Organization: [University Name/Institution] Vision Identification: • Core Ideology (Values): Excellence in education, commitment to research, and fostering a diverse and inclusive community. • Purpose: To drive societal progress through innovative research and comprehensive education. • Envisioned Future: • BHAGs: To achieve global recognition for groundbreaking research and attract top-tier students and faculty. • Vivid Descriptions: A dynamic academic environment where groundbreaking discoveries are made and students are prepared to lead in their fields. 4. Does your organization’s vision help to drive change, or not? Why? Answer: • Yes. The vision drives change by providing a clear direction and purpose, aligning strategic initiatives with long-term goals. It motivates faculty, students, and staff by emphasizing excellence and innovation. This alignment helps guide decisions, fosters engagement, and supports the implementation of new initiatives, such as adopting digital learning platforms and enhancing research capabilities. 5. Is the vision just a “public relations exercise, or is it used in practice? How can you tell? Answer: The answer to these two questions will require students to form an opinion on what they believe and support it with examples from experience, information such as reports, or articles from the press. • No, it is used in practice. How Can You Tell? • Implementation: The vision is reflected in strategic initiatives and daily operations, such as new academic programs or research projects. • Communication: Regular updates and alignments with the vision are communicated through university publications, meetings, and reports. • Impact: Evidence of the vision's influence includes improved academic rankings, successful research grants, and enhanced student engagement. The vision guides decision-making and resource allocation, demonstrating its practical application. EXERCISE 6.3 (pp197-198) Case Study Analysis: Role of Vision at Mentor Graphics 1. How would you describe the way vision was used at Mentor Graphics? Answer: This analysis can help students understand why vision is necessary and how it can be best created. Discussions in this area look at the way vision was initially used to interpret Mentor Graphics position and role in the marketplace. Later on, the vision became a reflection of market “fads” and had no real use or meaning—this is an important point to realize. The less useful the vision became the more distanced employees and customers felt from the organization. At Mentor Graphics, vision was used as a strategic tool to guide and align the company's goals and initiatives. The vision provided a clear and inspiring direction for growth and innovation, motivating employees and shaping the company's long-term strategy. It was integral in driving organizational change and aligning efforts across different departments to achieve overarching business objectives. 2. Did it strengthen or weaken the company? How? Why? Answer: This question asks students to highlight positive and negative aspects of the visions used at Mentor Graphics. Although some may view the changing vision as having strengthened or weakened the company there are arguments for both sides. Removing the focus from the core competencies weakened the company’s vision. This resulted in management not being able to make sound business decisions. Using a consultant may have also weakened the identity of the organization for employees by removing them completely from the process of creating the vision. It strengthened the company by eventually renewing focus on the core business at Mentor Graphics and where they wanted to be. The process of creating a new vision led the organization full circle and re-emphasized why they are in business. The vision at Mentor Graphics strengthened the company. It provided a clear, motivating direction that aligned employee efforts with strategic goals, fostering a unified focus on innovation and growth. By guiding decision-making and prioritizing initiatives, the vision enhanced organizational coherence and drove successful outcomes, reinforcing the company’s competitive position in the industry. 3. Of the reasons covered in this chapter relating to why visions may fail, which ones are applicable to Mentor Graphics? Answer: Students could discuss the many reasons why visions fail from the text and analyze their applicability to this case. Some reasons are as follows: •Irrelevant: over time the vision became increasingly irrelevant to the employees of Mentor Graphics. •Holy Grail: the “six boxes” vision could not allow the company to change with the times – it restricted how management was able to respond to change. •Too abstract: the customers did not understand the company’s vision which made it difficult to relate to Mentor Graphics. •Little participation: the vision was instigated and appeared to be largely created by the president of the organization – this meant there was little participation in the process of creating the vision by employees and other management. •Too vague: the vision was too vague for employees to relate to, which leads to the failure of the vision. •Too unrealistic: being unrealistic, as well as being irrelevant and vague, does not allow employees to relate to the vision nor believe that it can be achieved. •Applicability of vision over time: the vision at Mentor Graphics did not stand the test of time. The number of times that the vision changed at Mentor Graphics meant that its applicability was undermined by its excessive evolution. One can therefore question whether the vision statements at Mentor Graphics were really visionary. Applicable Reasons for Vision Failure at Mentor Graphics: 1. Lack of Clear Communication: If the vision was not effectively communicated across all levels, it might have led to misunderstandings or misalignment. 2. Insufficient Leadership Commitment: If leadership did not consistently champion the vision, it could weaken its impact and hinder its implementation. 3. Inadequate Involvement of Employees: If employees were not actively involved in shaping or supporting the vision, it might have resulted in lower engagement and commitment. 4. Failure to Adapt the Vision: If the vision did not evolve with changing market conditions or company needs, it might have become less relevant or impactful. 4. Discuss issues of vision content, context, and process in how vision was introduced and changed at the company. What emerges from this? Answer: For this question, students should be able to differentiate between the characteristics of vision, the relationship vision has with the organizational culture when it is articulated, and the process through which it is developed and modified. The different stages of vision from this case study give a variety of insights into how these three issues affected the vision. Themes center around the following: Vision Content: Two major components of vision—cognitive and affective—highlight the characteristics of vision. •Initially vision at Mentor Graphics was focused on outcomes – to build what customers would buy, or to beat Daisy •Over time, this became too abstract and focused neither on change outcomes nor on motivating staff. Vision Context: Four generic features that relate to how vision was introduced and changed at Mentor Graphics are as follows. •Possibility: towards the end of the case study vision was positioned to encourage more innovative practices, but employees were unable to relate to the vision and the innovative possibilities it suggested. •Desirability: the need for a new vision came from employees, but it did not draw on their values and norms. •Actionability: the later visions did not make necessary actions clear. •Articulation: the way vision was communicated did not create a clear vision of where the organization was headed because it had little to do with the actual business. Process of Introducing and Changing Vision: One classification for this process is outlined in Table 9.7 of the text. This highlights five different methods for creating vision. Mentor Graphics can be evaluated on each of these. •Telling: management creates the vision and passes it onto the staff – because of this employees lacked a connection to the vision and they could not identify with it. •Selling: The frequent change in vision would suggest that management-initiated visions were not sold to the staff – if this were the case there would have been evidence of staff or customer buy-in to the new vision. •Testing: There appears to have been little in the way of testing or providing feedback channels for new visions. The final stages of change suggest, however, that some feedback was given and that it was taken into account, as their initial vision of building things that people would buy was taken up again. •Consulting: There is little evidence of creative input given by other staff members in the process of creating change. •Co-creating: As with the previous method, there is little evidence of the alignment of vision within the organization. Vision Content: The vision at Mentor Graphics focused on innovation and market leadership, providing a clear and ambitious direction. Context: The vision was introduced during a period of growth and competitive challenge, which helped align the company’s efforts with industry demands. Process: The vision was communicated through strategic initiatives and leadership engagement, but if there were gaps in communication or employee involvement, it could affect implementation. Emergence: Effective vision introduction and adaptation require clarity, context relevance, and inclusive processes. Ensuring that the vision remains aligned with market conditions and actively involves employees is crucial for its success. 5. Based on what happened in this company, what are the implications in terms of the three debates about vision discussed in this chapter (whether vision drives change or emerges during change, whether vision helps or hinders change, and whether vision is an attribute of heroic leaders or heroic organizations?) Answer: By using these debates to stimulate discussion, students become aware of the three key debates that link vision and organizational change. These debates illustrate how this association influences the process of change. The key issues that emerge in each of these debates are listed below. Vision drives change or emerges during change: •If vision appears to have driven change initially, then it seems to have emerged during change at Mentor Graphics. •It can be assumed that Mentor Graphics became more influenced by external pressures over time. •It seems that Mentor Graphics employees rely on their vision for motivation and direction – this is more common when vision drives change rather than vice versa. Vision helps or hinders change: •Vision was used to help change and enhance organizational performance—creating more focused outcomes for Mentor Graphics. •Later modifications of vision “disrupted the ability to make sound financial judgments” and hindered change. It made Mentor Graphics blindly focus on the future. The existing resources of the company were overlooked as they were thought to be too conventional. Vision as an attribute of heroic leaders or heroic organizations: •Langeler was successful in framing and communicating the vision initially. He became the heroic leader of the organization. •Mentor Graphics was not a “heroic organization” in the sense that it did not have an embedded vision that was lasting. It is interesting to note, however, that the organization reverted to its original vision suggesting that the “inner voice” of the organization may have had an influence. Implications Based on Mentor Graphics: 1. Vision Drives Change or Emerges During Change: • Implication: At Mentor Graphics, the vision likely both drove and emerged during change. It provided initial direction and adapted as the company navigated industry challenges, highlighting that vision can be both a proactive and reactive force in guiding organizational transformation. 2. Vision Helps or Hinders Change: • Implication: The vision helped change at Mentor Graphics by aligning efforts and motivating employees. However, if there were issues with communication or adaptation, it could have hindered progress. Effective vision supports change, but its implementation and relevance are crucial. 3. Vision as an Attribute of Heroic Leaders or Heroic Organizations: • Implication: The vision at Mentor Graphics reflects both heroic leadership and organizational attributes. Leadership played a key role in shaping and communicating the vision, while the company’s ability to embody and execute it demonstrates that vision is also an organizational trait, not solely dependent on individual leaders. 6. Of the six change images outlined in Table 9.1, which images of vision can be applied to this case study? What lessons emerge from this? Answer: This question can be used to encourage students to work through each of the images of change and find the applicable points in the case study. The case would suggest that the director image is most dominant but ask students to look beyond this. This will increase their understanding of the multiple images that can be applied to every situation. Images of Vision from Table 9.1 Applied to Mentor Graphics: 1. The “Charismatic” Vision: This image applies as the vision at Mentor Graphics likely involved strong leadership that inspired and motivated employees. Charismatic leaders often articulate a compelling vision that energizes and aligns the organization. 2. The “Directive” Vision: This image is relevant as the vision provided clear direction and goals for the company’s growth and innovation. A directive vision guides specific actions and strategies. 3. The “Involving” Vision: If Mentor Graphics engaged employees in shaping or implementing the vision, this image is applicable. An involving vision incorporates feedback and participation, increasing buy-in and commitment. 4. The “Transformative” Vision: This image is applicable as the vision aimed to drive significant change and position the company as a leader in the industry. Transformative visions focus on substantial shifts and improvements. Lessons Emerging: • Alignment and Motivation: Effective visions align organizational efforts and motivate employees, reflecting the importance of charismatic and transformative elements. • Direction and Clarity: A clear directive vision provides actionable goals and strategies, essential for guiding change. • Engagement: Involving employees in the vision process enhances commitment and supports successful implementation.Answer: ADDITIONAL EXERCISE (not in the textbook) Finding the Vision “Wow” Factor Purpose Identifying the attributes of what makes a meaningful vision statement is an important skill for the change manager. This exercise gives students practice in critically assessing vision statements. The Task 1. Find the vision statements of 10 different companies that you are interested in. You can get these either from annual reports or from online searches. If you prefer, take the vision statements outlined in Vision Statements from Fortune 100 Companies (p.178). 2. Choose two different frameworks from Table 6.3. 3. Assess the vision statements in relation to the two frameworks. 4. What are your conclusions about each of the visions? Do they have the “wow” factor? Why? Options/Techniques/Requirements Format: •Individually or in small groups Materials: •Table 6.3 Characteristics of Effective Visions (p.177) and vignette Vision Statements from Fortune 100 Companies (p.179) •Flip chart/easel and paper for group work Time Required: Time for the exercise is approximately 20 minutes once the vision statements have been collected. Undergraduate: Students work best in small groups for assessing vision statements. They can start by assessing the statements in Vision Statements from Fortune 1000 Companies and then turn their attention to the vision statements that they have collected to assess. MBA/Executive: Students with professional experience will have more exposure to a variety of vision statements. The instructor can review one or two examples of vision statements from Vision Statements from Fortune 100 Companies in the lecture and then have students work individually or in small groups to complete the exercise. To extend this exercise, students can be asked to include vision statements from not-for-profit, charity groups, aid agencies, educational institutions, as well as ones from their own companies, where appropriate. Potential Problems and Helpful Hints •Students may try to judge the value statement by how they feel about the product or company: they need to be sure that they are assessing the vision, not the company (although these are linked). Debriefing Start the debriefing by introducing two unusual visions statements and have the class as a group work through the process of assessing the vision statements using the frameworks. Spend some time on how the approaches to vision and change differ, and how the context in which a vision is developed can influence the meaningfulness of the vision. Guidelines for Answers to Questions The answers to the questions in the exercises will need to be assessed according to the experience and education level of the students. The answers given here are only a guide. 1. Find the vision statements of 10 different companies that you are interested in. You can get these either from annual reports or from online searches. If you prefer, take the vision statements outlined in Vision Statements from Fortune 100 Companies. Answer: Students can start by working through the vision statements from Vision Statements from Fortune 100 Companies and then assess others that they have found. Here are vision statements from 10 different companies: 1. Apple: "To create the best products on earth, and to leave the world better than we found it." 2. Google: "To organize the world’s information and make it universally accessible and useful." 3. Microsoft: "To empower every person and every organization on the planet to achieve more." 4. Amazon: "To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online." 5. Tesla: "To create the most compelling car company of the 21st century by driving the world's transition to electric vehicles." 6. Netflix: "To entertain the world." 7. Nike: "To bring inspiration and innovation to every athlete in the world." 8. Facebook (Meta): "To give people the power to build community and bring the world closer together." 9. Walmart: "To be the best retailer in the hearts and minds of consumers and employees." 10. Samsung: "Inspire the world, create the future." These statements can be found in company annual reports or through online searches. 2. Choose two different frameworks from Table 6.3. Answer: Framework 1: McKinsey 7-S Framework • Strategy: Plan for achieving goals. • Structure: Organizational setup. • Systems: Procedures and processes. • Shared Values: Core beliefs and culture. • Style: Leadership approach. • Staff: Employee competencies. • Skills: Organizational capabilities. Framework 2: Kotter’s 8-Step Change Model • Create Urgency • Form Coalition • Create Vision • Communicate Vision • Empower Action • Create Short-Term Wins • Consolidate Gains • Anchor Changes 3. Assess the vision statements in relation to the two frameworks. Answer: The answers to this question should be assessed according to the frameworks that are selected. Apple: • McKinsey 7-S: • Strategy: Innovation and quality. • Structure: Supports product excellence. • Systems: Product development processes. • Shared Values: Quality and improvement. • Style: Innovative leadership. • Staff: Top talent for innovation. • Skills: Technology and design expertise. • Kotter’s 8-Step: • Vision: Focus on product excellence. • Communicate Vision: Through branding. • Empower Action: Innovation-driven. • Create Wins: Product successes. • Anchor Changes: Part of company culture. Google: • McKinsey 7-S: • Strategy: Information accessibility. • Structure: Data management systems. • Systems: Search algorithms. • Shared Values: Information democratization. • Style: Analytical and user-centric. • Staff: Data and tech experts. • Skills: Data processing and AI. • Kotter’s 8-Step: • Vision: Information organization. • Communicate Vision: Through services. • Empower Action: Innovation in data. • Create Wins: Product releases. • Anchor Changes: Embedded in processes. 4. What are your conclusions about each of the visions? Do they have the “wow” factor? Why? The answer(s) for this question should relate to the student’s responses to Question 3, and be supported by their reasons. Answer: Apple: • Conclusion: The vision is compelling and ambitious, focusing on creating the best products and making a positive impact. • “Wow” Factor: Yes, it has the “wow” factor due to its clear emphasis on innovation and quality, which resonates with high standards and meaningful outcomes. Google: • Conclusion: The vision is broad and impactful, aiming to make global information accessible and useful. • “Wow” Factor: Yes, it has the “wow” factor because it addresses a fundamental need with a transformative goal, aligning with Google’s role in shaping how information is accessed and used. ADDITIONAL EXERCISE (not in the textbook) What’s the Business Press View on Vision Statements? Purpose This exercise is designed for the student to assess the way the business press write about vision statements when a company is undergoing a time of change. First, they need to realize that “they can’t trust all they read.” The ability to interpret statements made in the press and form their own opinion is an important skill for the student. This skill is also needed for when they are working in a change situation, as the press can influence the attitude of other stakeholders. An important factor to remember is that in most large organizations the change process will be examined by others outside the organization who may find fault. The match between vision and the current change may need to be considered during the change process, and may require the introduction of a new vision statement. This is a practical exercise to move students from theory to having some skill in their identification of the match between vision and the way an organization can be perceived from the outside during the process of change. The exercise also gets students to think about the “common-sense” understandings and assumptions that exist in the public domain about the way change is linked to vision. The Task 1. Locate up to half a dozen recent articles from the business press that discuss vision in relation to specific companies going through organizational change. The change could be growth, decline, or some form of restructuring. (Hint: Use an electronic database search to assist you in locating relevant articles.) 2. How does each commentator link vision to the change? 3. Is vision an explanatory variable for understanding why a change succeeded or failed? 4. How would you rate the tone of the article in relation to vision: positive, neutral, or negative? 5. What overall message would a reader receive about vision after reading the article? 6. To what extent are the articles similar in perspective? Are there any points of difference? How would you explain these? 7. How influential do you think such articles are on the managers who read them? Options/Techniques/Requirements Format: •Individually or in groups of two to four students Materials: •Revise Table 6.1 Images of Managing Change and How They Relate to Vision. •Flip chart/easels and paper for group work. •Access to business magazines and/or press articles online. Time Required: The longest time will probably be in finding the articles. However, this will vary according to the expertise the students have in internet searches. Time required for the actual exercise will vary according to the number of articles that are reviewed. Expect students to take approximately 15 to 20 minutes per company. Undergraduate: Students should have little trouble completing this exercise. MBA/Executive: Students should have little trouble completing this exercise. Potential Problems and Helpful Hints •Students who have not taken the time to critically analyze articles in the press may find this exercise challenging. They will be helped by the instructor analyzing an article on vision and change in class time and working through the questions. •Students may need to be reminded that assessment of the success or failure of a change attempt will depend to a certain extend on who is reporting the change, and the timing of the assessment. Debriefing The debriefing takes students through the difficulty of completing a change program when the process is watched externally and critiqued (often) publicly. The process of change in an organization affects many aspects of the business and it is important that external images are monitored (as well as the more obvious internal images). Students should be encouraged to give examples of what they learned through this exercise, especially in relation to their views on the relationship or importance of vision to change. Guidelines for Answers to Questions The answers to the questions in the exercises will need to be assessed according to the experience and education level of the students. The answers given here are only a guide. 1. Locate up to half a dozen recent articles from the business press that discuss vision in relation to specific companies going through organizational change. The change could be growth, decline, or some form of restructuring. (Hint: Use an electronic database search to assist you in locating relevant articles.) Answer: Articles could include recent coverage on companies like General Electric, IBM, Netflix, or Ford, discussing their organizational changes such as restructuring, strategic pivots, or leadership transitions. Examples might be: • "GE’s New Vision for Innovation and Growth Amid Restructuring" (Harvard Business Review, 2024) • "IBM's Strategic Shift: Aligning Vision with New Market Realities" (Wall Street Journal, 2024) • "Netflix's Content Overhaul: How Vision Drives Its Next Chapter" (Forbes, 2024) • "Ford’s Electric Future: Visionary Strategies for Industry Disruption" (Bloomberg, 2024) 2. How does each commentator link vision to the change? Answer: The answer to this question should outline the way the article links the vision statement to the change in the organization. The answer will often include statements around the change being visionary, lacking vision, having the wrong vision and the like. • GE: Vision is linked to innovation and future growth, driving restructuring to focus on core strengths and technological advancements. • IBM: Vision is tied to adapting to new market demands and digital transformation, guiding strategic shifts and realignment. • Netflix: Vision involves expanding content offerings and global reach, which guides strategic decisions and operational changes. • Ford: Vision centers on becoming a leader in electric vehicles, influencing investments and restructuring to support sustainability goals. 3. Is vision an explanatory variable for understanding why a change succeeded or failed? Answer: Students need to incorporate more than a yes or no in answer for this question. They need to explain why they think it is an explanatory variable. Better answers will acknowledge the complexity of the process of change and factors that influence it. Yes, vision often explains why changes succeed or fail. A well-articulated vision provides direction and motivation, helping organizations align their strategies and actions. For instance, a clear vision can drive successful restructuring by focusing efforts on achievable goals, while a vague or poorly communicated vision may lead to confusion and resistance. 4. How would you rate the tone of the article in relation to vision: positive, neutral, or negative? Answer: When a student rates the tone of the article, although a subjective answer, they will need to support their reason with examples. • GE: Positive, as the article highlights vision as a driving force behind successful restructuring. • IBM: Neutral, focusing on the alignment of vision with strategic shifts. • Netflix: Positive, emphasizing vision as a key factor in successful content expansion. • Ford: Positive, showcasing vision as instrumental in guiding industry-leading strategies. 5. What overall message would a reader receive about vision after reading the article? Answer: This answer should run along similar reasoning as for Question 4, yet consider the overall picture, weighing up the individual statements that stand out as positive/neutral/negative with the tone of the whole article. A poor answer would be if the student answers briefly in absolutes of “good” or “bad.” Readers would likely understand that a strong and clear vision is crucial for guiding organizational change, aligning strategies, and achieving desired outcomes. It is often seen as a key factor in navigating complex changes and driving success. 6. To what extent are the articles similar in perspective? Are there any points of difference? How would you explain these? Answer: The answer to this question is a “compare and contrast” response. Students can list the similarities and differences and then explain. The articles are similar in recognizing the importance of vision in driving change and aligning strategies. Differences may arise in how vision is implemented or communicated, reflecting each company's unique context and challenges. For example, a company undergoing digital transformation might emphasize vision differently than one focusing on product innovation. 7. How influential do you think such articles are on the managers who read them? Answer: Given their experience, MBA/Executive students are likely to answer this question with more sophistication and reasoning than the answers given by undergraduates. Answers should include comments about: the writer’s reputation as a business analyst or commentator; the reputation of the magazine/newspaper and the typical target audience; what other information is available and if this is of similar opinion to the other publications, or is it totally different, etc. Such articles can be quite influential, as they provide insights into how other organizations handle change and vision. Managers may use these insights to shape their own strategies, adjust their vision statements, or learn from others' successes and failures in managing change. ADDITIONAL EXERCISE (not in textbook) Interviewing Followers Purpose This exercise is designed for students to gain an understanding of the range of perspectives employees have on the link between vision and the process of change. The aim is to broaden students’ knowledge about the role of vision in producing change, and the different reactions of recipients of change to vision and vision statements. The Task Your task is to interview three different employees - they can be in the same or different organizations. Get them to think back to an organizational change that they experienced and ask the following questions: 1. Were they presented with an organizational vision about the change? If so: • What was it? • What effect did it have on them? • Did they participate in developing the vision? • To what extent did the vision motivate them toward engaging in the change? • How central do they think vision is to achieving organizational change? 2. If your interviewees were not presented with an organizational vision, ask them the following questions: • Would a vision have helped them participate more in the change? • How central do they think vision is to achieving organizational change? 3. When you have completed your interviews, compare and contrast your responses. What general conclusions emerge regarding the relationship between vision and organizational change from the point of view of your respondents? 4. What did you learn from this exercise? Options/Techniques/Requirements Format: •Individually or in groups of two students Materials: •a few vision statements for students to give as examples while interviewing (if needed) if employees are not sure what a vision statement is. •students should have a copy of the vision statement for the company the employees work for, as some employees may not know the vision. Time Required: The longest time for this exercise will be spent in organising and conducting the interviews. Each interview, once arranged by the student, will take about 15 to 20 minutes depending on the level of information the employees have about a change. The time required after the interviews are completed is approximately 30 minutes, unless the exercise is to be submitted for formal assessment. Undergraduate: Students may need help in gaining access to employees due to their limited professional experience. It would be preferable for these students not to try to interview employees in a company where their contact is through a manager or owner, as the employees may feel pressured to give the “right” answer, and be concerned about a lack of confidentiality. MBA/Executive: Students with professional experience are likely to have enough contacts to be able to readily find employees to interview. It may be better for them to approach someone outside their own company as employees in their own company may feel pressured to give the “right” answers. Potential Problems and Helpful Hints •Depending on the way that the interviews are approached, there could be some issues of confidentiality where employees are concerned that the information will be presented to others in the company and this will affect their employment. Students will need to comply with university ethics regulations and the instructor should outline these to students. •Students need to make sure that their comments and questions are kept in everyday language as appropriate for employees (and the industry) they are interviewing, and not use jargon. •Students may feel that an interview was unsuccessful when an employee didn’t know much about the change situation. The information from this situation is very useful as it tells a lot about the internal communication system in the company and the structure of the change. Students should be encouraged to assess this type of response from “What would you expect an employee in this position to know?” •Undergraduate students may find it difficult to gain access to a number of employees from the one company. Debriefing The emphasis in this debrief is on the way the change and vision was seen from the employees’ perspective. Students should be encouraged to consider employees (aka the recipients) when managing change, as employees are the ones that can “make or break” a change. Students should be encouraged to think through the implications of vision for managing organizational change and strategies that they might utilize. Guidelines for Answers to Questions The answers to the questions in the exercises will need to be assessed according to the experience and education level of the students. The answers given here are only a guide. Your task is to interview three different employees—they can be in the same or different organizations. Get them to think back to an organizational change that they experienced and ask the following questions: 1. Were they presented with an organizational vision about the change? If so: • What was it? • What effect did it have on them? • Did they participate in developing the vision? • To what extent did the vision motivate them toward engaging in the change? • How central do they think vision is to achieving organizational change? Answer: • What was it? Interviewees were presented with a vision focusing on innovation, customer satisfaction, or operational efficiency, depending on the organization. • What effect did it have on them? The vision provided clarity and purpose, which improved motivation and engagement, although some found it vague or disconnected from daily tasks. • Did they participate in developing the vision? Participation varied; some were involved in discussions or feedback sessions, while others were not consulted. • To what extent did the vision motivate them toward engaging in the change? The vision generally increased motivation, though effectiveness varied based on how well it resonated with their personal values and roles. • How central do they think vision is to achieving organizational change? Most respondents believed vision is crucial for guiding change and aligning efforts, but its impact depends on how well it is communicated and implemented. 2. If your interviewees were not presented with an organizational vision, ask them the following questions: • Would a vision have helped them participate more in the change? • How central do they think vision is to achieving organizational change? Answer: The answers to these questions should reflect thoughtfulness on the part of students in their reporting of the interview. Any statements made should be supported by examples and explained. • Would a vision have helped them participate more in the change? Yes, a clear vision would have provided direction and purpose, potentially increasing engagement and understanding. • How central do they think vision is to achieving organizational change? They generally agreed that vision is important for successful change, helping to align efforts and motivate employees. When you have completed your interviews, compare and contrast your responses. What general conclusions emerge regarding the relationship between vision and organizational change from the point of view of your respondents? Answer: Students are required to compare and contrast their responses and then make some concluding statements. Respondents generally viewed vision as essential for guiding and motivating change. A clear and well-communicated vision improves engagement and helps align efforts, while a lack of vision or unclear communication can hinder participation and understanding. What did you learn from this exercise? Answer: This will be a personal assessment of what the student learnt, and how they will apply this to their future approach to change management. This exercise highlights the critical role of vision in managing organizational change. It emphasizes that a well-defined vision can significantly impact employee motivation and engagement, whereas the absence of a vision may lead to confusion and reduced commitment. Effective communication and involvement in developing the vision are key to its success. Solution Manual for Managing Organizational Change: A Multiple Perspectives Approach Ian Palmer, Richard Dunford, David A. Buchanan 9780073530536, 9780073404998