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Beckhard and Gleicher¶s Formula for

Change:
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V àhree factors must be present for meaningful

organizational change to take place. àhese
factors are:

] = Dissatisfaction with the status quo;

= Vision of what is possible;
±= First, concrete steps that can be taken
towards the vision.
= If any of these factors are missing or
weak, then you¶re going to get resistance.
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V Öe must be clear why things need to change

V Öe need to articulate why it is unacceptable
and undesirable to conduct business in the
same way
V If we, and our people, are not dissatisfied
with the present situation, then there is no
motivation to change.
V Managers and Supervisors need to provide
your organizational cases for change here.
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V 4ou should include the perspectives of the

three publics:

-- Shareholder Perspective (i.e. market share,

revenue, cost of goods)
-- Customer Perspective (i.e. customer
satisfaction, quality)
-- Employee Perspective (i.e. employee
satisfaction, turnover)
)!!* 
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V It is critical the employees fully understand and

can picture:
-- our future as an organization and
-- their place in the new organization.

V Supervisors/Managers need to share their

vision for the future organization:
-- Share where the organization is headed to
remove/reduce dissatisfiers
-- Make sure you describe the future in a way
that is very clear and easy for anyone in the
organization to envision.
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V Employees still need one important factor: their

role.
V Supervisors/managers need to make sure each
employee understands what steps they need to
take in order for this change to be successful:
-- they need to know what to do to prepare
themselves for the change (i.e. skill
development),
-- they need to know how they will be
contributing to the successful
implementation of changes (i.e.
reengineering, job changes).
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V pccording to this model, 7 levels of change can

be introduced; each has increasing levels of
difficulty-increasing from easy to virtually
impossible/very difficult

V Each succeeding level is more radical, complex,

and challenging than the one preceding it

V àhis model can be applied to goals, policies,

culture and day-to-day working of any
department, division or organisation
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V àhe easiest change to make is to learn the

basics ± how to do the things right and how
to immediately change enough to become
efficient in a new job.

V Level 1 changes are based largely on

personally adjusting to new standards and
procedures, and involve coaching or
explanations by others familiar with the job
or business activity.
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V Level 2 change requires a thorough

understanding of all the aspects of the new job
or business activity in order to identify and then
focus on doing very well those things which
have the most important impact and make the
largest contribution.

V àhe Pareto Principle states that 20% of the

things being done actually yield 80% of the
total payoff. ào maximize effectiveness, energy
must be shifted to and focused on doing that
20% (the right things).
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V àhis level of change involves analysis of core

functions and applies the Pareto Principle to
focus on stopping doing things - cutting out the
80% of things that only yield 20% of the value.

V In the simplest case, change at Level 3 focuses

on eliminating waste. If this can be done
systemically while keeping all organizational
interrelationships and subsystems in
perspective, major company-wide results can
be achieved.
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V Change at this level involves thinking about

ways to improve or fine-tune -- ways to
speed things up, shorten delivery time,
increase functionality, reduce downtime.

V Level 4 change makes something more

effective, more efficient, more productive,
and more value-adding - frequently with
customer input.
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V Level 5 marks the transition from incremental

to fundamental change. Copying, learning
from, and "reverse engineering" can
dramatically boost innovation at significantly
lower costs than starting from scratch.

V Benchmarking how other organizations are

doing things and then enhancing upon their
processes is the hallmark of the successful
innovator.
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V Change at Level 6 is about either doing
something very different or doing something very
differently - and transitions into degrees of
novelty which not only move an organization
"out-of-the-box", they move the organization into
areas where nobody else is doing it.

V Level 6 is a shift into 3-Sigma thinking. Such

trailblazing and greater degrees of risk-taking
can bring about genuinely new things, often by
synthesizing seemingly unconnected concepts
and technologies - or by totally shifting
perspective around the possible uses of a
product.
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V "Öhat is today impossible, but if it were possible
it would fundamentally change the way you do
business?" Joel Barker's famous question
reframes thinking extremely well for Level 7.
Market constraints, resource limitations, or
company culture are too often seen as
insurmountable barriers.

V ps a result, discoveries at Level 7 frequently build

on major mind shifts connected with exploratory
thrusts into the unknown - bold, significant and
long-term visions and change so different that it
cannot be compared to anything else known at
the time.


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