Friday, August 9, 2019

The Monthly “Change Insight” Book Tuning: Nonlinearity & Change Management Aug. 2019

Applying interdisciplinary management to gain an understanding of non-linearity as the very characteristic of the digital organization could be at the tipping point for driving the digital paradigm shift.

Change is inevitable, organizational change has become a common practice within an organization, but too often changes are made as a reaction to outer impulses, crisis, and demands. This is the bureaucracy’s way of meeting the challenges. A digital transformation is achieved via dynamic Strategy-Execution-Change life cycle management, though it is not all linear steps, but an iterative, ongoing and up-going change continuum.

 Non-linearity & Change Management

Three Approaches to Manage Intensive Change Successfully Due to the “VUCA” nature of the digital era, change is unavoidable and digital disruption is inevitable, with high intensity. There are so many things need to be changed, and there are also so many drivers behind changes. It is nevertheless true that the change itself has become unpredictable and evolutionary. The change managers have to ponder: Where do synergistic attainment of strategic business goals and high returns on investment occur? Which methodologies should you experiment with and what approaches will you take to improve management effectiveness?

Nonlinearity and Change Management The hyperconnectivity nature of digital breaks down the functional, geographical, or even organizational border. Businesses today become much more nonlinear, interconnected and interdependent than ever. When systems are not just about linear relationships, they are defined as nonlinear dynamic. Applying interdisciplinary management to gain an understanding of nonlinearity as the very characteristic of the digital organization and business ecosystem could be at the tipping point for managing changes and driving the digital paradigm shift.

Three Systematic Perspectives of Change Management The digital organization is a dynamic system which needs to continue evolving and adapting. Change is inevitable with increasing pace. Change Management shouldn’t be just some random business initiatives, it has to fix the imbalance in the key business elements such as people, process, and technology in order to run a holistic digital organization. It’s important to leverage system principles and perspectives and take a well-organized multidisciplinary approach to manage Changes effortlessly.

How to Set Digital IT Change Agenda Digital businesses become more dynamic and hyperconnected, change is the new normal with faster pace and velocity. IT faces an unprecedented opportunity to refine its reputation, also needs to take more responsibility as a true business partner. CIOs have to get the IT change agenda ready, have access to both internal and external resources for achieving the desired ROI and running high-performance digital IT organization. IT needs to proactively participate in business conversations. Change is not for its own sake, every change needs to have a noble business purpose and a well-set business agenda. Change is a dance between the top management and the affected parts of the organization, and change is an ongoing business capability.

The Pitfalls of Linear Thinking and Traditional Management Linear thinking is viewed by many as being simply the opposite of closed-loop thinking (thinking in a straight line rather than circularly). As linearity often implies cause and effect with no feedback. in the industrial setting, business management often practices linear thinking with a set of linear skills; it perhaps works in the considerably static and silo business environment. However, in today’s dynamic digital business environment with hyper-connectivity and interdependence, the traditional management based on linear thinking and reductionist logic is outdated, causes silo or frictions, and decelerates business speed.

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