Tuesday, September 21, 2010

Change in Change-Resistant Firms

The theme of this week is change...


Today in class we talked about Providian Trust and Spartan Stores - two firms that are trying to change their firm with IT.   Providian struggled to overcome cultural resistance to IT and Spartan grappled with the structure of their organization.  These point to the struggles of dealing with rejectors of technology.  


In your research participation, you are trying to discover what makes people reject technology.


In the lectures, we are talking about business process improvement and the need to improve our process to impact our business effectiveness.


These three elements converge this week on the blog - how do you think that we overcome resistence to change?  Are the tactics and methods different depending upon the type of resistence? How do you incentivize individuals and/or organizations to adopt technology?  Have you seen resistence in your own job experiences? Share your stories and your thoughts!

26 comments:

  1. I think our generation is very receptive to change. We purchase an iPhone and then less than one year later a new one comes out which includes all sorts of different and new elements. Of course, we all go out and buy it...in fact several people wait hours in line for the product.

    I think we overcome resistance to change by slowly integrating new technologies. As we change within our business, it is important to keep those who are resistant informed. It is important to be patient and thoroughly explain the changes as we implement them. Change is only scary because its outcomes are unknown. And, when you are dealing with a change in technology, not only are the outcomes unknown, but also the process to get to the outcomes are foreign and confusing.

    I do not have any work experiences that relate, but i just changed from a PC to a Mac and I am struggling. I was resistant. The only reason I gave in was because we got such a good deal on it from my grandma. As I have learned how to use it, I am starting to like it. It is just a little different and takes getting used to.

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  2. I was working in a turbine overhaul shop a few years ago. We were overhauling industrial turbines which were used to generate electricity. Once I entered to this company, as a mechanical engineer supervisor, I realized that there is not an appropriate data transfer between the shop and headquarter. Crew in the shop cannot receive their needs due to delay between receiving request by headquarter, processing, purchasing,and delivery phases and this was led to delay in delivery of turbines. Each day of delay in delivery for a turbine resulted in 10000 to 20000$ based on our contracts. We developed a new e-based communication between the shop and corresponding persons in headquarter. All requests should be submitted by email and it should be processed less than 24 hour. In each step we knew who is the corresponding person and in the case of delay we could easily track that, the task which was impossible before of that change.
    This change put discipline in our firm and business process was improved drastically.
    Thank for hearing,

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  3. A few months ago in my office, management had decided to adopt new accounting software. This software would be very useful in organizing clients and individuals relationships with the clients, etc. All in all the software was a good change for accounting, but for the regular workers like me, the upgrade was extremely aggravating. First job numbers completely changed. A client known as client 1 with job number 4 became PR4000X67B001, not very user friendly when looking for a job on the network. Also, when labeling a new job there was no standard to name a new folder in the network. These are just a few of my complaints when they adopted the new software and I understand why they wanted it, but I think input from the people using it besides accounting might have helped the process flow a bit better.

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  4. I think people reject technology because of who they are, not because of the technology. Some people are set in their ways, and the only time they adapt to technology is when they are forced too.

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  5. There are always resistance to new technology, just like there are always some people who want it to evolve faster than it can. I think one way is to just bring people together. There are always some people lead the way. And others will wait until the technology is more pervasive and easier to use. When you get both sides to work together, the synergy may be amazing.

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  6. Honestly, with time, I think resistance to change becomes a moot point. As long as it's a good product or service that is. The technologies we're talking about (iPhone, Twitter) prove to be a good example. Over time everything seems to catch on.
    One year ago if you would have said I'd have my very own iPhone I would have said no way. I've always thought of it as an unnecessary, expensive, monthly investment. But, alas, within the past month I too have become a smart phone fan.

    Maybe I just have a lot more to keep up with these days...
    Either way, if a good product can get a foundation of users, do a little good marketing, I'd say the next step could be just wait.
    Fads will always make bank.

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  7. One of the law firms I worked for had implemented an ERP about a year before I started. All the attorneys seems annoyed with it's functionality and only adopted it because it was forced upon them by the managing partner. I, myself, was also a critic of the software's clunky user interface and generally odd labeling of functions. For instance, the function to access/create documents was labeled "Events" and the time entry function was labeled "Tasks". It just wasn't very intuitive. Also, most functions seemed to require more steps than necessary.

    One senior partner simply refused to use the system and maintained all of his client files in a huge folder tree on the server. His complaints were similar to those of the rest of us but his main gripe with the system was that it displayed only the document number assigned by the ERP when attaching documents to an email. This created a problem when sending multiple documents. For example, if you attached three documents to an email, instead of the document names reading "Purchase Agreement", "Consulting Agreement", and "Board Resolutions", it would simply display something like "1035462", "1035463" and "1035464". Our clients were generally very busy and didn't want to click through each document to see what it was. And although this problem was eventually remedied, that particular partner never adopted the system, claiming he didn't have time to learn it.

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  8. I agree with Doug in that some people will reject changes in technology simply because they are set in their ways. However, it becomes easier to adopt change when the change is smooth and beneficial.

    Managers should find a system that is similar in design to their current one but offers more benefits. While I was working at a community bank, we implemented a new system and it was welcomed by many of the employees. Our old system constantly had glitches and was difficult to locate customer's information when you were in the middle of doing a task. However, the new system allowed multiple windows to be open and made it much easier to multi-task.

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  9. Whether people reject or accept technology, completely depends on what the technology is and how it works. While part of what Doug said is correct, I don't think it is as cut and dry as what Doug laid out. If the technology is laid out in an easily presentable manner then technology will be embraced. However, if the technology is replacing something that is commonly used and liked then resistance will be met.

    In the case of Providian, the employees who had direct contact with the customers felt marginalized when their major task was taken away. Then those workers will immediately become resistant to technology. However, if Providian implement a technology to aided the employees interaction with customer (speed up computer process time) then it would have been embraced.

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  10. Frankly, I resisted using SAP at the beginning it installed. I thought that the whole process was too complex, which requires to fill the PO when you buy something and PR when you receive the products from vendors. PO/PR form consists of all the information of your department, vendors and yourself. At beginning, I preferred to use paper as usual to complete the process. I felt it quicker especially when you need the signatures from higher level. But several months later, I found that SAP should indeed improve my working efficiency. SAP does everything you did before, I mean that before using it, I should email or call my supervisors for finishing the process. But after adapting the SAP, I should save a lot of time to do other jobs. SAP system will automatically send the approval email. I also could check the status on line. So I didn’t need to call everyone in the approval line. But when I left company, I still resisted using chat function in Lotus system. I just felt uncomfortable using the “IM” function on LotusNote. Although I use Yahoo and MSN, both of them filtered by company, I have never used LotusChat in company.

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  11. I agree with Holly and believe that our generation and generations to come will be more and more receptive to change. As such, I believe once we become the CEO's of companies they will be as receptive to change as we are. The corporate environment will change and adapt as quick as possible which will make the market of the future a very hard one to figure out.

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  12. Virtually everyone, even the most change-resistant business cultures, talk about the potential benefits of introducing technology that can automate, organize, and archive all their information. It's one of the maxims that no one argues. But this near unanimity is only regarding the theory of technology.

    Try to implement an automation system that, once learned, will save significant amounts of time and you will be greeted with resistance because it creates more work for everyone right away. It's like the old saying "Hard work pays off in the long run, procrastination pays off now."

    I don't think that this is likely to get better with our generation. Granted we have higher computer literacy rates, but that could just make things worse. Who needs to use a customized database when they have excel available? Granted it isn't searchable throughout the company, and it doesn't redundantly archive the information, but they know how to use excel.

    I think IT redesign is always going to be an uphill battle.

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  13. I like the comparison between active and passive rejection when it comes to new technologies. It's funny because we can all think of examples of both.

    Up to this point, I have passively rejected using a MAC operating system as my primary computer simply because I haven't had a good enough reason to stop using my PC and go out and buy a new MAC just for the sake of buying one. However, I've had my current computer for going on 3 years and I've got the itch more than ever before to make the switch when the time comes. Thinking of the social impact of change is also interesting... As time goes on and more and more people around me are getting macs, the social pressure and want to be a part of the current trend increases.

    I think that the social aspect plays a part also in active rejection. My dad, for example, is hostile towards the iphone. It took him a while to become proficient on his current mobile device, and the thought of changing (I think) intimidates him. I wonder if our generation will respond similarly to future technologies when we' re older and things are continuing to evolve and get better. Or, since we've grown up with technology, will we be better at making the jump?

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  14. Yes...Resistance to change is a human behavior. But, at the same time "Change" is permanent.
    In my previous job at a Software consulting firm, even in the presence of technologically informed personnel, a change implemented to the source code and approach to the new release was negatively pursued.

    Well, nothing was done in particular by the management to change the perception and eventually people got used to it. But, I do believe, if the change was managed well, the productivity and efficiency could have been much better than what we had.

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  15. I really like how many people are comparing windows and mac. I think this divide is starting to really impact people's work and social lives. Large companies are ridiculously hesitant to switch to mac while many of their workers are starting to use them at home. I don't know how the market is segmented, but it seems windows is slowly losing some of the consumer personal computing market. What's most interesting is that mac is founded in unix. Open source platforms are primarily unix based. Businesses are looking to cut cost, and open source platforms provide a way. I think it's interesting that there is a push to the open standard and mac, both of which are unix based.

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  16. This is why you hire an LSU MBA to run your company. Resistance to change comes from a routine and a comfort in a niche that you have carved out for yourself. A fear of something new and the potential effects drives individuals to dig their heels in and resist at all cost. I think a critical factor in getting change resistant people to change and adopt technology and any other kind of change is effective communication. As simple as it sounds, the managers and C-level employees of the companies make these decisions because they are making them in what they feel is in the best interest of the bottom line. Employees are not always concerned with the bottom line. The onus therefore falls on the shoulders of management. Employees need to understand specifically what the objectives of the management are. Why are we changing to technology? What prompted this change? How will this change affect us all? Providing the employees with this information will allow them to see the decision more strategically, instead of through the myopic view of their own self-interest.

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  17. There seems to be two schools of thought behind how to get someone to change in any respect, whether it be technological or otherwise. The first way is though traditional marketing process, and what I mean by that isn’t traditional marketing mediums but the process of finding the problem the customer has and communicating the value of your product as a solution. The second is a little more devious. This involves making a product and then convincing people they need to have it. The reason it is devious is that the company is creating a problem that the customer doesn’t even realize that they have. We saw this with bottled water and we are seeing this now with twitter. If you would ask most twitter users whether they would have wanted this service a few years ago, most would probably say no.

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  18. I worked for the accounts receivable department in one of my summer jobs, specifically with the IT side of it. Everyone was relying on paper copies of receipts and such. Business progressed at the speed of traditional snail mail and everything was reviewed by hand.
    This was not the most efficient or quickest method of business.

    I helped set up an EDI system (electronic data interchange) that enabled a fully automated relationship with our suppliers. It sped up the accounts receivables by eliminating wait time on simple routine responses. The challenge was getting the suppliers to adopt this same technology. There was much complacency in the industry and little incentive to change (it allowed them longer float times thus more cash to use). We were able to change over about 25% of the vendors and on that action alone the company saved over $900/month in paper and ink from printing receipts alone. It was nice to see a real benefit from a BPR.

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  19. I believe that some people are resistant to change no matter what the reasoning. Whether its technology, management philosophy, or business process redesign. Each organization will have subsets of people who adopt the change without questioning it, those who reject it automatically, and those who lie in the middle who could go either way. It's really up to senior management to provide the leadership and accountability to swing the middle people to the strategy the organization set forth, and let the rejecters know they either jump on board and accept the change or leave the firm. Most people will follow when they know they will be held accountable, and if they can't follow the strategy top management put in place, they don't need to be with the organization anyways.

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  20. Just within the last year, LSU has changed most of its HR functions. Before retiring, I worked directly under a HRM administrator in a department on campus who was opposed to the system and rejected the new protocol by submitting paper copies. Other changes would include e-filing and moving operations from the LSU mainframe to the new online system. Even now, because the system is still flawed, many people reject or complain abt the system. I definitely think offering different incentives to increase adaptation on should be effective. The system relies on the effectiveness of each participant from supervisors,Dept. heads, HR personnel, and Payroll specialists. Flaws and defects in the system can result in delayed pay. Adaptation is almost forced at this point but it can create frustration for personnel. Different workshops have been offered, but I think more can be done to help facilitate the change

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  21. Resistance to change will always exist. Its part of the human condition. A way to overcome this could be to appeal to the person in other ways such as the improvement will make their task easier or faster or more powerful.

    The tasks or methods are not very different depending on the type of resistance, however you do have to tailor the reasons for the change to the individual to make it the most effective.

    Incentivizing individuals is a tricky matter. All people are different and what motivates one person may not motivate another person. That again depends on the situation and must be tailormade to the individual or division.

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  22. I think there is no universal way to make people accept technological changes. It depends on the type of resistance and technology itself. For example, when Windows released there newest Operating System(OS), Windows 7, I was working as a System Administrator in a software company. At first, the employees did not want to switch, mostly because of the level of comfort with the existing Operating System. But once the IT department made it mandatory to upgrade and once the employees started using the OS, the resistance slowly died down. The employees started accepting the change only when they were pushed out of their comfort zone.
    I think it is down to the IT department to figure out a way to make the employees accept the change and move forward inorder to help the company stay ahead of the competition.

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  23. I agree with Dheeraj in the fact that the dilemma of trying to get your company to accept this new IT world is dependent upon the IT department convincing the rest of the organization that this is a plus. There is always going to be disagreement among colleagues, and there has to be a happy medium met that is brought upon by the IT department. Spartan stores is a prime example in the fact that the shear numbers that they were working with, and the fact of trying to get every organization to accept a new technology that is "suppose" to help everyone. Spartan is in a difficult situation because the technology idea that they are trying to portray can come across as only helping Spartan instead of helping the entire production. I believe that is Spartan was to come up with a way to provide this technology in a way that can benefit everyone in the organization then everyone wins!

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  24. @ Justin: One of the incentive tools for end users is to have a user friendly interface. I believe if the software provider make its software dynamic to adopt changes with a few upgrades all members of your company would be involved in the new ERP system.
    Besides if the company put a few awards for employees, who are learning and using the new system and helping to upgrade it to a more efficient software, people would be more motivated to use that ERP resource.

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  25. I was working as a software developer for a Singapore based client. We were implementing a supply chain management website, which would perform better, faster and integrate suppliers, customers and the employees within their organization.
    With this as a base I can give some real time examples about the resistance to changes that I witnessed.
    1. We were developing the web app in the latest version of an S/W tool. This tool provided most of the out of box feature for development activities. This way not only could we increase our efficiency but also could decrease our effort. But, many members within the team were reluctant to learn the latest version; hence they stuck with the old-fashioned way of doing things. Though, my team members are the "IT" people they also resist to change. But as days passed by and the time pressure to meet the deadline increased, many started looking at the easier option given by the new version of the S/W!! And by the end of project, we did have a lot of team members using this (Including myself
    2. The clients for whom we were developing this application were using a 3rd party vendor tool for a very long time. Hence, thought the business solution we proposed was good, they did not trust us in the beginning. We had to do a lot of Proof of Concept Demonstration to kick start the project. Also, when the final application was delivered we never received an expected acknowledgement from their end. Out Project Manager came up with a strategy of sending one of the team members on-site to give a hands-on experience of our product. As days passed by the client understood the product better!! The last update I received from my ex-colleague was we have acquired many projects from that client now.
    So from the 2 examples we can conclude no one wishes to come out of their “comfort zone”. Once, we start experimenting and get familiarized with new process whether it is IT or Business, we would learn to appreciate it

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  26. I agree with Doug. I believe that it is a trait in a person to be receptive to change or not. Some people are comfortable in the way they currently do things, and they have the mentality of "if it ain't broke, then don't fix it." They are this way in all facets of their life, not simply when dealing with technology.

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