Change is hard. Organizational change is inevitable. The pace of change continues to escalate. This is presenting major challenges for organizations around the globe. The scenario is further complicated by the misunderstanding and inadequate response to one of the most frustrating components of the change process…the unique individuals who are collectively the organization. This is a factor which may provide an explanation for an organizational change failure rate which has continued to hover near 70% for over 15 years...
Figure I- Model of an Organizational LOE
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The Loss of Effectiveness (LOE) Index is a quantitative individual assessment tool which assists in the change management process by bridging the disconnect between the organization and its employees. The LOE Index is based on the Model of an Organizational LOE (Figure 1) which states 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 will negatively impact the overall effectiveness of an organization." (Grady, 2005)
The LOE Index focuses on the employees and the factors inherent in change by identifying those behaviors, perceptions, and attitudes that emerge in organizations in response to change. These include decreased productivity, decreased morale, decreased motivation, increased conflict, increased absenteeism, and increased turnover (Table 1). This enables the organization to identify emerging symptoms, and react and plan efficiently to the impact of the change. A significant number and/or intensity of symptoms will negatively impact the overall performance and profitability (effectiveness) of an organization and lead to the development of an organizational LOE.
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