The model of an organizational LOE hypothesizes that an organization transitioning through an organizational change initiative will experience a loss of stability that results in the exhibition of symptoms that are predictable, measurable, and can negatively impact the overall effectiveness of an organization. These symptoms include: decreased productivity, decreased morale, decreased motivation, increased conflict, increased absenteeism, and increased turnover. Based on similar types of diagnoses for individuals, if a significant number of the symptoms, e.g. a majority, are present in the organization's behavior, the result will be an Organizational Loss of Effectiveness (LOE). Figure I is a graphical representation of the model.
Organizational Change causes a loss of stability which results in the development of a predictable and measurable set of symptoms within an organization. When a significant number of these symptoms are present simultaneously, an organizational loss of effectiveness will occur. (Grady, 2005). |
For the purposes of this model, a loss of stability is related to a change in the organization that employees within an organization have previously been accustomed to "leaning on." For example, employees "lean on" objects within the respective work environment such as a business process, a particular type or version of software (technology), an office, a building, a method of transportation, compensation structure, and leadership. When these "objects" are removed, a loss of stability occurs; it is this loss of stability that can cause the development of the symptoms associated with the organizational LOE.
Many change initiatives focus on the "change" itself, instead of on the implications for the individuals experiencing the change. It is counterintuitive that generally, "change" initiatives are implemented without first benchmarking the potential response of the individuals experiencing the change.
This is the unique contribution of the Model of the Organizational LOE and the corresponding LOE Index. Utilization of the LOE model begins by evaluating each individual impacted by the change. Subsequently, a collective report is generated that provides a snapshot of the organization that then forms the baseline for evaluating the overall "change" health of the organization on the baseline date and into the future. The LOE Index can be administered intermittently, at set intervals, or before-during-after each change initiative. The timing of the LOE Index is specific to the needs of each organization and its respective intent for the use of the results.
References
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"The role of Change Management is the transformation of chaotic inconvenience into a manageable process first within the Individual and then Collectively within the organization."
~Victoria Grady, PhD |
The LOE Index
The LOE Index, based upon the LOE Model, is designed to be a quantitative individual assessment tool, which assists in bridging the unavoidable behavioral disconnect found between individual employees and an organization undergoing change. The LOE Index identifies behaviors, perceptions, and attitudes that emerge in organizations as a response to change and that ultimately impact overall effectiveness. The tool enables organizations to anticipate symptoms and to plan and adapt efficiently to the impact of change. The index focuses on the employee, and how factors inherent in change affect their performance and subsequently have a negative impact the organization.
The index is based on 7 years of research that indicates any change in an organization may cause a "loss of stability" in individuals affected by the change. This loss of stability results in a predictable and measurable set of symptoms. Persistence of these symptoms leads to the development of an organizational LOE.
The LOE index contains 54 questions, which address the seven symptoms indicative of a LOE: |
- Global Assessment (G)
- Frustration (F)
- Apprehension/Anxiety (A)
- Retardation of Development (D)
- Refusal to Participate (P)
- Withdrawal (W)
- Rejection of Environment (R)
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