5. Burke-Litwin Model
- This model identifies the transformational – external environment, mission and strategy, leadership and organizational culture - and
transactional sources of change.
- Fundamental premise of the model that that planned change should flow from top of the diagram (environment) the bottom (performance
- However, (indicated by the arrows, the feedback loops go in both directions, indicating that internal organizational factors can impact the
environment and not just be on the receiving end of a one way environmental determinism
6. Four frame model
- This offers four frames for the managers to conceptualize how the organization operates.
o Structural frame – presents organizations as akin to machines that are designed to efficiently turn inputs into outputs
o Human resource frame – directs attention to the relationship between the organization and the people that comprise it
o Political frame – suggests that we see organizations as sites where participants interact in pursuit of a range of objectives, some in common,
some that differ, some that complements and some that conflict
o Symbolic frame – the essence of an organization may lie not in its formal structure and processes but in its culture; the realm of symbols,
beliefs, values, rituals and meanings
7. Diagnosis by image
- This technique allows organizational members to use images to describe the organizations and this can be used as a basis for discussion.
- Eg. Simile – “My organization is like a well-oiled machine” or Metaphor – “My organization is a dinosaur”
Diagnostic Models: Components
PESTEL - This analyses the external environment in terms of six factors
Framework o Political – the threat of terrorism
o Economic – unemployment levels
o Social – demographic changes
o Technological – development of new/ substitute products
o Environmental – air pollution policies
o Legal – antitrust law
- It is important that PESTEL framework incorporate trends with the extrapolation into the future that this implies rather than
rigidly documenting the status quo Scenario - Creating stories of possible future scenarios that are considered to be vital to the future of the organization
Analysis - Scenario Methodology
1. “Brainstorm” the range of environmental factors with the potential to impact on the performance of your organization (in
the spirit of brainstorming, accept all suggestions at this point; that is suspend judgements to significance of any
2. Get individual participants to identify which factors from this list they believe to be the “key drivers” of performance over
a specified time period (eg. Five years)
3. Aggregating these individual responses, identify the five most commonly cited key drivers (eg. Exchange rates,
technological innovation, entry by new competitors, mergers, competition for key staff)
4. Using these key drivers as the core elements, construct multiple scenarios. One useful approach is to construct three
scenarios: most likely, optimistic, and pessimistic.
Gap Analysis - This is a tool used for reviewing the organization’s position based on where they are and where they want to get to.
- Based on three questions:
o Where are we now?
o Where do we want to get to?
o How can we get there?
Elements of - These are five elements of strategy that are considered mutually reinforcing through scale advantage
Strategy o Arenas: What business will we be in? – Which product categories, market segments, geographic areas, core technologies
o Vehicles: How will we get there? – Internal development, joint ventures, licensing/franchising, acquisitions
o Differentiators: How will we win the marketplace? – Image, customization, price, styling, product reliability
o Staging – speed of expansion, sequence of initiatives
o Economic logic – lowest costs through scale advantage, lowest costs through scope and replication advantage, premium
prices due to unmatchable service, premium prices due to proprietary product features
- Any misalignment of these signifies the need for change.
Strategic - This aims to identify the strategic assumptions of managers and determine their consistency with the business environment.
Inventory - This determines whether the strategy should be a focal point for change.
o Defining the boundaries of the competitive environment
o Defining the key assumptions
o Is our assumption set internally consistent
o Do we understand the relative importance of each of our assumptions
o Are our key assumptions broadly understood
o Do we have a process for reviewing and validating our key assumptions and premises
Newsflash - This is an exercise that encourages managers to be very specific and succinct about change and clearer about the intended
Cultural Web - This provides a way of mapping the organizational culture through seven elements
o Paradigm – set of assumptions commonly held