TABLE 3.1: Complexity Checklist

Magnitude

To what extent:

Are many organizational units and employees affected by the change?

Are the organizational units affected by the change widely dispersed geographically?

Are partnerships with external stakeholders and organizations required to implement the change?

Scope

To what extent:

Are the organization’s policies and procedures affected?

Will employees be required to acquire new skills?

Does the change initiative intrude on or alter the current routines of employees?

Is revision (or replacement) of information systems technology required to support the change initiative?

Fluidity

To what extent:

Is the organization undergoing significant changes in mission or responsibilities as a result of changes in the external environment that will require the change initiative itself to adapt?

Is the change initiative prescribed in a rigid manner (without discretionary flexibility)?

Is the external environment likely to change in ways that may affect implementation of the change initiative?

If leaders of the organization systematically assess complexity by answering these questions, they will enhance their ability to anticipate and cope with obstacles. Failure to comprehend the nature of a change initiative up front can lead to problems during the implementation phase of the change initiative.

How should leaders strategize when the responses to the questions reveal a highly complex change initiative? In the short run, leaders can reduce the complexity of a change initiative by reducing the magnitude or scope by scaling down the change effort, starting with a pilot project or phased approach to the change, or engaging a partner (with more capabilities) in the change effort. Building a more change-centric and capable organization can strengthen the organization’s ability to implement more complex changes over the long term.

Magnitude

We define magnitude as the overall size, extent, and coverage of a change in relation to the organization. Magnitude generally refers to the number of people or stakeholders potentially affected by the change effort, both within and outside the organization. Magnitude also refers to how many locations or divisions within the organization stand to be affected by the proposed change: The more locations and divisions affected, the more complex the change. In addition, magnitude captures the number of people who must be brought on board to support the change and the need to develop partnerships with other organizations to facilitate the change.

When analyzing the magnitude of a change, it is critical to understand that the importance of the number of stakeholders affected by the change is directly related to how the internal and external stakeholders perceive that the change will alter their daily functioning and their overall satisfaction with the organization. It is also important to gauge how employees view their roles or positions within the organization relative to the change—are they likely to be enhanced or threatened?—because this will have a significant impact on their contributions to the change process.

If stakeholders perceive their own participation in the change effort as a threat to their work, they are less likely to support the overall effort. In some cases, stakeholders who feel particularly threatened may attempt to sabotage the process entirely. On the other hand, stakeholders who perceive that their positions will be enhanced by the change may prove to be valuable allies during the change process.

To gauge the magnitude of a change fully, it also is necessary to assess how the change will affect external stakeholders of the organization. The greater the number of external stakeholders affected, the more complex the change. The first task is to understand and identify the number of external stakeholders likely to be affected and their potential impact on the change effort. In most cases, it is vital to have the buy-in of key outside actors, especially those who have the ability to influence others, either in support of or in opposition to the change. In some cases, it may be necessary to partner with outside organizations to implement the change, adding further complexity to the change initiative.

Scope

The scope of a change initiative refers to the potential impact of the change on the organization’s current culture, structures, policies, strategies, processes, and behaviors. This aspect of the complexity of a change reflects how deeply the change is going to affect the organization’s most essential operational elements. For example, the change may require the use of new technology, different skills, or modified responsibilities. The more systems and structures that need to be modified, the greater the scope of the change and the greater the potential for resistance to the change.

Fluidity

Fluidity, or the adaptability of the change initiative to the shifting nature of the environment, is the third key aspect of the complexity of a proposed change effort. The organization’s ability to adapt and alter processes may depend upon the degree to which the environment is changing during the transformation, thus affecting how the change initiative itself evolves. Change initiatives within organizations are likely to evolve in response to both external and internal factors.

Throughout the planning and implementation process, the change agents may need to shift their focus and revise the planned strategy or tactics. When new external or internal impediments arise, momentum in achieving progress toward implementing changes in processes or systems may suffer. The consequence of not adequately assessing the internal and external environments that will interact with a change initiative is that the leaders of the change may not be ready to adapt and refocus their efforts.

Stakeholders

Stakeholders are the individuals and organizations that perceive that they have a role in, or are affected by, an organizational change. Internal stakeholders are the employees located within an organization undergoing change. External stakeholders are located outside the organization undergoing transformation, usually including Congress, the executive branch, private interest groups, other governmental or nonprofit organizations, and citizens. Private contractors to public and nonprofit sector organizations are also considered external stakeholders.

The key elements to be assessed regarding stakeholders are (1) the degree of diversity among the stakeholders, in terms of profession, worldview, and mission orientation; (2) the perceptions of stakeholders regarding their potential gain or loss from the change initiative; and (3) the existence (or lack) of collaborative networks among stakeholders to facilitate communication among them and between leaders and important stakeholder groups.

Diversity of stakeholders, based on group values, professional training, and commitment, can increase the challenges to leading change. For example, management of homeland security and public emergency issues requires collaboration among stakeholders from many different professions (Klein 1999). Direct contact and communication with all stakeholders involved in a change process are key to ensuring successful change efforts. When collaborative networks are available to facilitate communication during change initiatives, planning and implementation become much easier.

To assist change leaders and managers, we have developed a set of questions that will help gauge the role of stakeholders in change initiatives. If organizational leaders can confidently answer the questions in Table 3.2, they have a good understanding of the perceptions, diversity, and collaboration processes involving stakeholders. In addition, they will be able to diagnose potential problems and to take actions to ensure stakeholder buy-in and support during implementation. If leaders do not know the answers or find that the extent of their knowledge and preparation is minimal, stakeholders may not be managed effectively as change is implemented, heightening the risk of implementation weaknesses or failure. (Chapter 5 provides change leaders with approaches to strengthening communication and collaboration with stakeholders.)