Program- MBA 4th Semester

Module - 3
Course : (Organization Change and Development Management)
TOPIC: Positive Model
LECTURE

SHORYA GUPTA
ASSITANT PROFESSOR

SCHOOL OF MANAGEMENT,
ITM UNIVERSITY
 Contents

1. Learning Story: A new blend at tata tea

2. Positive model of changes
3. General Model of change:

2
 LEARNING OUTCOME
• Understand key strategies to overcome resistance to change in
organizations.
• Analyze Kurt Lewin's Change Management Model and its
application in change processes.
• Evaluate Leavitt’s Diamond Model and its impact on organizational
transformation.
• Apply the ADKAR model to effectively manage and implement
organizational change.
 Microsoft’s Transformation Using Kotter’s 8-Step Model
Background
In 2014, Microsoft appointed Satya Nadella as CEO. The company faced challenges
such as declining PC sales, competition from cloud providers, and a rigid
corporate culture.
Planned Change
Microsoft aimed to transition from a software-centric to a cloud-first, mobile-first
company while fostering a culture of collaboration and innovation.
Implementation Using Kotter’s 8-Step Model
1. Create a Sense of Urgency – Recognized the need to pivot towards cloud
computing to stay competitive.
2. Build a Guiding Coalition – Nadella formed a leadership team to drive
transformation.
3. Develop a Vision and Strategy – Shifted focus to Azure Cloud, AI, and
subscription-based services.
4. Communicate the Vision – Encouraged open communication and cultural change,
shifting from a competitive to a growth mindset.
5. Empower Employees for Action – Promoted cross-team collaboration and
innovation.
1. Generate Short-Term Wins – Successful launches of cloud products, Office
365 expansion, and strategic partnerships.
2. Sustain Acceleration – Continued investment in AI, gaming (Xbox), and
enterprise solutions.
3. Anchor New Approaches in Culture – Reinforced a customer-focused,
innovative culture.
Outcomes
• Revenue Growth – Microsoft’s cloud business (Azure) became a major
revenue driver.
• Market Leadership – Became a leading cloud provider, competing with
Amazon Web Services (AWS).
• Cultural Shift – More open, innovative, and customer-centric corporate
environment.
Conclusion
• By applying Kotter’s 8-Step Model, Microsoft successfully transformed into a
cloud and AI-driven company, regaining industry leadership and sustaining
long-term growth.
• The positive model focuses on what the organization is doing right
• It helps members understand their organization when it is working at its
best and builds off those capabilities to achieve even better results
• This positive approach to change is consistent with a growing movement in
the social sciences called “positive organizational scholarship,”
5 Stages of Positive Model are:
1. Initiate the Inquiry
2. Inquire into Best Practices
3. Discover the Themes
4. Envision a Preferred Future
5. Design and Deliver Ways to Create the Future
• INITIATE THE INQUIRY
• This first phase determines the subject of change. It emphasizes member
involvement to identify the organizational issue they have the most energy
to address.
• Identify the need for change and engage stakeholders in a positive
discussion.
• Focus on what is working well in the organization.
• For example, members can choose to look for successful male-female
collaboration (as opposed to sexual discrimination), instances of customer
satisfaction (as opposed to customer dissatisfaction)
• INQUIRE INTO BEST PRACTICES.
• This phase involves gathering information about the “best of what is” in
the organization. If the topic is organizational innovation, then members
help to develop an interview protocol that collects stories of new ideas
that were developed and implemented in the organization.
• Conduct an analysis of past successes and positive experiences.
• Understand what factors contributed to these successes.
• For example, If the topic is organizational innovation, then members
help to develop an interview protocol that collects stories of new ideas
that were developed and implemented in the organization.
Discover the Themes –
In this step, people look at all the stories and experiences shared in the previous
phases. They try to find common patterns or ideas that keep appearing in
different stories. These patterns, called themes, help us understand what makes
positive experiences happen.

For example, if we are studying stories about innovation, we might find common
themes like:
•Managers allowing employees to experiment with new ideas.
•Team members supporting each other.
•Customer interactions inspiring creative thinking.

•Even small details matter—every little thing that contributed to success should
be noted. These themes help organizations move from "what is" (the current
situation) to "what could be" (a better future).
Envision a Preferred Future
In this step, people take the themes they discovered earlier and imagine a better
future for the organization. They think about how things could improve by
challenging old ways of doing things and coming up with new ideas.

Using past successes as inspiration, they create "possibility propositions"—

statements that connect what the organization does well now with what it can
achieve in the future. These statements should be exciting, inspiring, and
realistic.

For example, if a company found that employee collaboration led to success, a

possibility proposition could be:

"We will create an open work environment where employees from different
teams regularly share ideas and innovate together.“

Once they have a clear vision, they identify the people and processes that need
to change or improve to make this future a reality. This vision becomes a strong
statement of "what should be."
• Design and Deliver Ways to Create the Future

• This is the final step, where the organization takes action to make the future
vision a reality. It’s about turning ideas into concrete plans and putting them
into practice.
• Here’s what happens:
• Create an action plan – Decide what steps need to be taken to achieve the
vision.
• Implement changes – Start making improvements based on the plan.
• Assess results – Check if the changes are working and if they are moving the
organization toward its goal.
• Make adjustments – If something isn’t working, tweak it and improve.
• This is an ongoing process, meaning the organization keeps discussing and
refining what works best while staying focused on its positive future.
1. Entering and Contracting
Egage further in a planned change program and to commit resources to such
a process. Entering an organization involves gathering initial data to
understand the problems facing the organization or to determine the
positive areas for inquiry
• This step involves recognizing the need for change and forming an
agreement between stakeholders (e.g., management and change agents)
about how to proceed. The key aspects include:
• Identifying the problem or opportunity
• Engaging stakeholders
• Establishing a formal contract defining roles, expectations, and objectives
• Once this information is collected, the problems or opportunities are
discussed with managers and other organization members to develop a
contract or agreement to engage in planned change
Example:
A retail company notices a decline in customer satisfaction scores. The
senior management decides to hire an OD consultant to investigate the
issue. In the contracting phase, they agree that the consultant will assess
customer service processes and suggest improvements.
2. Diagnosing
• Diagnosis can focus on understanding organizational problems, including
their causes and consequences, or on collecting stories about the
organization’s positive attributes.
• Diagnosing is a very important step in planned change. It involves carefully
studying an organization to understand its problems, causes, and effects,
or to identify its strengths and opportunities. This helps in deciding what
changes are needed.
KEY STEPS IN DIAGNOSING:
• Choosing a Model – A structured way to understand how the organization works.
• Collecting Data – Gathering information through interviews, surveys, observations,
or company records.
• Analyzing Data – Looking for patterns, problems, or areas that need improvement.
• Providing Feedback – Sharing findings with employees and managers to discuss

THREE LEVELS OF DIAGNOSIS:

• Organization Level – Examines the whole company, its structure, culture, and
strategies.
Example: A company is struggling with declining profits because its strategy is
outdated.
• Group Level – Looks at teams or departments and how they work together.
Example: The marketing and sales teams are not coordinating well, leading to poor
campaign results.
• Individual Level – Focuses on job roles and employees’ performance.
Example: Employees feel unmotivated because their tasks are repetitive and
boring.
HOW IS DATA COLLECTED?
• Interviews (Talking to employees and managers)
• Observations (Watching how work is done)
• Surveys (Asking structured questions)
• Company Records (Checking reports, meeting notes, etc.)
3. Planning and Implementing Change

• Once the problems and opportunities in an organization are identified, the next step is to
plan and implement changes to improve the situation. In this stage, employees and
change experts (OD practitioners) work together to create action plans and apply
strategies to achieve the organization’s goals.
• Types of Changes (Interventions):
• Human Process Interventions – Focus on improving how individuals and teams
work together.
Example: Team-building exercises to improve collaboration.
• Structural & Technological Interventions – Modify the organization’s setup or
introduce new technology.
Example: Changing the reporting structure or implementing a new software
system.
• Human Resource Interventions – Aim to enhance employee performance and
well-being.
Example: Offering leadership training or mental health programs.
• Strategic Interventions – Align the company with market demands and long-
term goals.
Example: Expanding into a new market or shifting to a digital business model.
• How is Change Implemented?
• Motivating Employees – Helping them see why change is necessary.
• Creating a Clear Vision – Defining what success looks like.
• Gaining Support – Getting leadership and employees to back the change.
• Managing the Transition – Making adjustments along the way.
• Sustaining Momentum – Reinforcing change to make it permanent.

4. Evaluating and Institutionalizing Change:

The final stage in planned change involves evaluating the effects of the
intervention and managing the institutionalization of successful change programs.
Feedback to organization members about the intervention's results provides
information about whether the changes should be continued, modified, or
suspended. Institutionalizing successful changes involves reinforcing them through
feedback, rewards, and training. It demonstrates how traditional planned change
activities, such as entry and contracting, survey feedback, and change planning,
can be combined with contemporary methods, such as large-group interventions
and high levels of participation.