Nadler and Tushman’s congruence model takes a different approach to looking at the factors influencing the success of the change process (Nadler and Tushman, 1997). This model aims to help us understand the dynamics of what happens in an organization when we try to change it.
This model is based on the belief that organizations can be viewed as sets of interacting sub-systems that scan and sense changes in the external environment. This model sits firmly in the open systems school of thought, which uses the organism metaphor to understand organizational behaviour. However, the political backdrop is not ignored; it appears as one of the sub-systems (informal organization – see below).
This model views the organization as a system that draws inputs from both internal and external sources (strategy, resources, environment) and transforms them into outputs (activities, behaviour and performance of the system at three levels: individual, group and total). The heart of the model is the opportunity it offers to analyse the transformation process in a way that does not give prescriptive answers, but instead stimulates thoughts on what needs to happen in a specific organizational context. David Nadler writes, ‘it’s important to view the congruence model as a tool for organizing your thinking … rather than as a rigid template to dissect, classify and compartmentalize what you observe. It’s a way of making sense out of a constantly changing kaleidoscope of information and impressions.’
The model draws on the sociotechnical view of organizations that looks at managerial, strategic, technical and social aspects of organizations, emphasizing the assumption that everything relies on everything else. This means that the different elements of the total system have to be aligned to achieve high performance as a whole system. Therefore the higher the congruence the higher the performance.
In this model of the transformation process, the organization is composed of four components, or sub-systems, which are all dependent on each other. These are:
- The work. This is the actual day-to-day activities carried out by individuals. Process design, pressures on the individual and available rewards must all be considered under this element.
- The people. This is about the skills and characteristics of the people who work in an organization. What are their expectations, what are their backgrounds?
- The formal organization. This refers to the structure, systems and policies in place. How are things formally organized?
- The informal organization. This consists of all the unplanned, unwritten activities that emerge over time such as power, influence, values and norms.
This model proposes that effective management of change means attending to all four components, not just one or two components. Imagine tugging only one part of a child’s mobile. The whole mobile wobbles and oscillates for a bit, but eventually all the different components settle down to where they were originally. So it is with organizations. They easily revert to the original mode of operation unless you attend to all four components.
For example, if you change one component, such as the type of work done in an organization, you need to attend to the other three components too. The following questions pinpoint the other three components that may need to be aligned:
- How does the work now align with individual skills? (The people.)
- How does a change in the task line up with the way work is organized right now? (The formal organization.)
- What informal activities and areas of influence could be affected by this change in the task? (The informal organization.)
If alignment work is not done, then organizational ‘homeostasis’ (see above) will result in a return to the old equilibrium and change will fizzle out. The fizzling out results from forces that arise in the system as a direct result of lack of congruence. When a lack of congruence occurs, energy builds in the system in the form of resistance, control and power:
- Resistance comes from a fear of the unknown or a need for things to remain stable. A change imposed from the outside can be unsettling for individuals. It decreases their sense of independence. Resistance can be reduced through participation in future plans, and by increasing the anxiety about doing nothing (increasing the felt need for change).
- Control issues result from normal structures and processes being in flux. The change process may therefore need to be managed in a different way by for instance employing a transition manager.
- Power problems arise when there is a threat that power might be taken away from any currently powerful group or individual. This effect can be reduced through building a powerful coalition to take the change forward (see Kotter above).
Our view
The Nadler and Tushman model is useful because it provides a memorable checklist for those involved in making change happen. We have also noticed that this model is particularly good for pointing out in retrospect why changes did not work, which although psychologically satisfying is not always a productive exercise. It is important to note that this model is problem-focused rather than solution-focused, and lacks any reference to the powerful effects of a guiding vision, or to the need for setting and achieving goals.
We have found that the McKinsey seven ‘S’ model is a more rounded starting point for those facing organizational change. This model of organizations uses the same metaphor, representing the organization as a set of interconnected and interdependent sub-systems. Again, this model acts as a good checklist for those setting out to make organizational change, laying out which parts of the system need to adapt, and the knock-on effects of these changes in other parts of the system.
The seven ‘S’ categories are:
- Staff: important categories of people.
- Skills: distinctive capabilities of key people.
- Systems: routine processes.
- Style: management style and culture.
- Shared values: guiding principles.
- Strategy: organizational goals and plan, use of resources.
- Structure: the organization chart.
- See Managing on the Edge by Richard Pascale (1990) for full definitions of the seven S framework.