Action Research in Consulting and Organizational Change

IS6602 Seminar 3 Methods I: Action Research 1

Introduction Action Research (AR) is a method of research and organisational change that is sometimes adopted by consultants AR is useful for IS6602 because it facilitates a very structured approach to the activities that consultants undertake I have used AR in several consulting projects in different industry sectors AR is very similar in general principles/structure to the proprietary consulting methods used by McKinsey, PWC etc.2

Origins AR was developed in the mid-1940s by Kurt Lewin and focused on a three-stage process: 1) Unfreezing, 2) Changing and 3) Refreezing 1. The existing mind-set has to be dismantled 2. The old is replaced with something new 3. The new mind-set is frozen into place and an equilibrium is restored Lewin also argued that only through experience can people really change 3

Lewin, AR and Consulting Lewin s contributions to knowledge are important for consultants, who must: Work with clients to help them understand the nature of a problem This involves rationalization making sense Provide a change process that addresses the problem Help clients to accept the new mind-set that is created This involves institutionalization ensuring that everyone buys in to the solutions The client experience is central to consulting practice Happy Clients = Success 4

Later Developments In 1978, Roger Susman and Gerard Evered proposed a new model for AR They expanded the three stage model to five, which operates in a cyclical fashion 1) Diagnosis, 2) Action Planning, 3) Action Taking, 4) Evaluation, 5) Reflection In addition to this formal structure, there is a need for a formal agreement between the consultant and the client 5

Modified 1978 AR Model Exit Entrance Diagnosis Action Planning Reflection (Learning) Researcher-Client Agreement Agreement Consultant-Client Evaluation (Assessment) Intervention (Actiontaking) 6

AR Definition Action Research involves solving organisational problems improving organisational circumstances for all stakeholders (employees, managers, customers) by means of consultant intervention, thus contributing to knowledge about method, theory & organisational practice 7

AR Characteristics Iterative One or more cycles of interventions is normal Rigorous Carefully planned iterations to develop detailed problem context knowledge and to identify relevant solutions Continuous problem (re)diagnosis Flexible application of the method Collaborative Consultants and Clients must work together Clients must actively participate in the project 8

AR and Clients As a method, AR has seen application by both researchers (academics) and consultants AR requires the application of theory Clients may not care about theory; all they want is a solution to an organisational problem Consultants and clients need to work together collaboratively, which can be a huge challenge for both parties They need to listen, to discuss, to reflect 9

AR and Theory A theory is a plausible body of principles offered to explain phenomena The Theory of Planned Behaviour Punctuated Equilibrium theory Shifting Baseline Theory Work Systems Theory The purpose of a theory is to describe and explain how things actually work (Lyneham, 2002) 10

AR and Theory Application We use theories to organise and make sense of phenomena explain and predict human behaviour focus on the most fundamental ideas, showing the relationships between these ideas provide a consistent set of concepts and principles that we can compare with reality Theories are useful if they guide and structure the design of a project Theories may need to be adapted to a specific context 11

Which Theories Do You Know? They don t have to be academic theories But they do need to help you make sense of something They might describe your successful behaviour in a particular domain You might not think that they are theories at all; perhaps you call them models, techniques, heuristics, survival techniques? But whatever you call them, they should be things that you can consistently apply to a situation so as to achieve predictable outcomes 12

AR, the Organisation and Change An AR project can be expected to investigate the evolution of an organisational change process in detail Each organisational context will have a unique set of constraints and idiosyncrasies Organisations are not static objects: You can t plan everything in advance There is an infinite variety of circumstances to which you must adapt! A plan is useful, but must also be flexible as the situation changes 13

The Need for Guidelines Any method needs guidelines if it is to be used consistently and correctly Consultants need to know what they are doing and how to do it well, so as to ensure: Consistency when applying the method Plans and interventions are rigorous (methodologically correct) and relevant (useful, consumable, readable, meaningful and value adding to the client) 14

Improving AR as a Method AR has been applied quite extensively in the last 50 years, but before 2000 there were no detailed how to do AR guidelines Based on our experience, we wrote up guidelines in five papers, one of which specifically targets consultants. These guidelines were designed to be helpful, but not deterministic. These guidelines were originally written for researchers, but I adapt them here for consultants 15

Principles of AR (2004) In our first paper, we developed a set of five principles and 31 criteria that were designed to: apply to most AR situations be interdependent yet flexible facilitate clear/systematic presentation of findings, justification of courses of action, explicit contributions to knowledge an assessment of how well the AR was done 16

Modified 1978/2004 Model Exit Entrance Diagnosis Action Planning Reflection (Learning) Researcher-Client Agreement Agreement Consultant-Client Evaluation (Assessment) Intervention (Actiontaking) 17

Theory & AR (2012) In our second paper, we revised some criteria, added others and focused in particular on the role of theory We identified two different types of theory instrumental focal and documented how each contributes to making AR better. 18

New Cyclical Process Model (2012) Project Start Project End ActionPlanning Diagnosis Reflection Instrumental Theory Focal Theories Consultant-Client Agreement Evaluation Intervention 19

Integrating AR Over the last 50 years, many different forms of AR were developed. In a paper published in 2021, we integrate twelve of these AR forms into a single model in order to strengthen AR as a method 20

A Few Key Papers Davison, R.M., Martinsons, M.G. and Wong, L.H.M. (2022) The Ethics of Action Research Participation, Information Systems Journal 32, 3, 573-594. Davison, R.M., Martinsons, M.G. and Malaurent, J. (2021) Improving Action Research by Integrating Methods, Journal of the AIS 22, 3, 851-873. Davison, R.M., Martinsons, M.G. and Ou, C.X.J. (2012) The Roles of Theory in Canonical Action Research, Management Information Systems Quarterly 36, 3, 763- 786. Davison, R.M. and Martinsons, M.G. (2007) Action Research and Consulting: Hellish Partnership or Heavenly Marriage?, in Kock, N.F. (Ed.) Information Systems Action Research: An Applied View of Emerging Concepts and Methods, Springer, Chapter 16, 377-394. Davison, R.M., Martinsons, M.G. and Kock, N. (2004) Principles of Canonical Action Research, Information Systems Journal 14, 1, 65-86. 21

Principles & Criteria 1. Consultant-Client Agreement 2. Cyclical Process Model 3. Role of Theory 4. Change through Action 5. Specification of Learning 22 Note, some criteria that are not relevant to the practice of consulting have been removed

1. Consultant-Client Agreement (CCA) Guiding foundation for the project Client must understand what AR involves Mutual guarantees for behaviour, including an NDA and consultant rights Basis for building trust in the organisational context Promote a spirit of shared inquiry, such that the client accepts the principle of collaboration and the consultant gains access to resources 23

CCA Criteria C1a Both the consultants and the client agree that action research (AR) is the appropriate approach for the organisational situation. C1b The consultants and the client jointly specify the focus of the AR project clearly and explicitly. C1c The client makes an explicit commitment to the project. C1d The roles and responsibilities of the consultants and client organisation members are specified explicitly. C1e The project objectives and evaluation measures are specified explicitly. C1f The data collection and analysis methods are specified explicitly 24

2. Cyclical Process Model (CPM) Sequential progress through the Cyclical Process Model helps to ensure rigour Some between-stage iteration may occur, but it needs to be justified Usually, several cycles are necessary It is rare that a problem can be fixed quickly Considerable time and energy, from many people, are required 25

CPM Criteria C2a The consultants plan to follow the cyclical process model and justify any deviation from it. C2b The consultants will ensure that they have sufficient skills and confidence prior to engaging with the clients in the diagnostic stage. C2c The consultants will immerse themselves into the world of the client prior to and during the project. C2d The consultants will have rich conversations with the clients during the diagnostic stage in order to understand the problem context. C2e The consultants plan to conduct an independent diagnosis of the organisational situation. 26

CPM Criteria C2f The consultants will ensure that they plan their actions explicitly based on the results of their independent diagnosis. C2g The consultants will implement and evaluate the planned actions. C2h The consultants will reflect on the outcomes of the intervention. C2i Following this reflection, the consultants will make an explicit decision on whether or not to proceed through an additional process cycle. C2j Both the exit of the consultants and the conclusion of the project will be due to either the project objectives being met or some other clearly articulated justification. C2k The consultants will consciously adhere to the ethical principle of non-maleficence at all stages of the project. 27

3. Theory Theory is a central component of Action Research Theory can help the consultant to analyse a situation, to ask the right questions and then to plan the changes However, it is highly unlikely that a consultant will know definitely and in advance the exact theory that will be used So the consultant may need to engage in theory-free problem diagnosis at the start of a project 28

Theory Lewin (1945): There is nothing so practical as a good theory Ghoshal (2005): Nothing is as dangerous as a bad theory Each of these two statements applies equally to AR Selection of an appropriate theory must be handled with great care given the potential for negative consequences in the organisational setting. 29

Instrumental Theory Instrumental theories Help us to organize our thoughts, generate coherent explanations [and so] achieve understanding (Hambrick, 2007). Will be practical (Lewin 1945) and closely match reality (cf. Weick 1995). Instrumental theories are particularly valuable for diagnosis and planning They play a mediating role between client and researcher They are used to explain and analyse organisational activities related to the project/problem They include any tools, models or processes that help us to make sense of how work is done or how outcomes are achieved. 30

Examples of Instrumental Theories Balanced Scorecard Value Shop, Value Chain, Business Process Models Porter s Five Forces Analysis SWOT and PEST Work Systems Theory Any model or theory that can be applied to an organisational situation so as to make sense of what people do 31

Focal Theory Provides the intellectual basis for action-oriented change in a CAR project. Is unlikely to remedy an organisational problem alone; must be in combination with one or more instrumental theories Must be aligned to the precise organisational circumstances Good examples of general-purpose focal theories are: Theory of Planned Behaviour Technology Adoption Model Punctuated Equilibrium Theory Transactive Memory Theory 32

PET: Punctuated Equilibrium Theory Unlike theories of steady but slow incremental change, PET suggests that change takes place in revolutionary bursts, triggered by significant environmental changes that break apart a system s deep structures Technological innovation can be one such environmental change Killer IT innovations can be seen as examples of these punctuations 33

TMT: Transactive Memory Theory Individual people can serve as external memory aids to each other (Wegner, 1986) Members of a Transactive Memory (TM) System (TMS) can benefit from each other s knowledge and expertise if they develop a good, shared understanding (meta-memory) of who knows what. TMS enable better use of knowledge held by members and so higher performance 34

Indigenous Theory Sometimes it may be that you cannot find any theory that adequately maps onto a specific organisational situation and gives you guidance about what kinds of action to follow You may need to develop your own theory, perhaps after the intervention is completed, in order to explain better what happened Do Western theories capture and reflect reality in China? Are there local constructs, concepts, ways of thinking that are not represented in the Western theories, yet which are critical to local behaviour? 35

Theory & Consequences What might go wrong if we pick an inappropriate theory? We could push the organisation to change in a direction that does not fit its organisational culture, leading to internal conflicts, or worse. We need to choose a theory that fits the organisational circumstances, the IT, the people, the culture. The client needs to approve the theory. 36

Theory Criteria C3a The project activities will be guided by a theory or set of theories. C3c The consultants will select and apply one or more instrumental theories for the independent diagnosis as they seek to derive the causes of the observed problems. C3d The consultants will consider developing conceptual models as a form of instrumental theory to help in the problem diagnosis. C3e The consultants will work with the client to identify a focal theory during the problem diagnosis. C3g The consultants will consider how combining data from different sources could strengthen their action-based intervention 37

Theory Criteria C3h The planned intervention will be premised on the focal theory and will address the problems diagnosed. C3i The consultants will consider if relationships between the variables from the problem diagnosis and the planned changes could be tested statistically so as to triangulate their findings more rigorously. C3j The focal theory will be used to evaluate the outcomes of the intervention. C3k The consultants will evaluate and reflect upon theoretical explanations for the current organisational problem situation. C3l The consultants will reflect on the focal theory used and its ability to predict the change outcomes. 38

4. Change through Action Action and change are indivisible If there is no change No problem, intervention failed, or obstacles prevent successful intervention Both consultant and client must be motivated to design and implement change The change needs to be contextually and culturally appropriate 39

Change through Action Criteria C4a Both the consultants and client are motivated to improve the situation. C4b The problem and its cause(s) will be specified as a result of the diagnosis. C4c The planned actions will be designed to address the diagnosed cause(s). C4d The consultants will consider how IT artifacts could accompany the planned actions. C4e The client will approve the planned actions before they are implemented. 40

Change through Action Criteria C4f The organisational situation will be assessed comprehensively both before and after the intervention. C4g The consultants will conform with their professional responsibility to ensure that their planned actions are sustainable in the organisational context. C4h The timing and nature of the actions taken will be clearly and comprehensively documented. C4i The consultants will follow up with the client at a suitable time after project completion to assess continued progress.

5. Learning through Reflection After the intervention is complete, the consultant and the client need to reflect on progress Did the practical solutions work? If not, why not? What else could be done? Were the theory and the method appropriate? What else was learned that can inform either future interventions in the current project or future projects? 42

Learning through Reflection Criteria C5a The consultants will provide progress reports to the client and organisational members. C5b Both the consultants and the client will reflect upon the outcomes of the project. C5c The consultants will report their activities and outcomes to the client clearly and comprehensively? C5d The consultants will consider the project results in terms of implications for further action in this situation. 43

Conclusions AR is a very practical and flexible method It provides a framework for consultants to apply to different situations and explains how theory can help It provides many criteria that push the consultant to engage in different activities It does not go into the precise details of how the client s needs can be diagnosed: we will look at this next week. 44