Understanding The Cost Of Change Function: A Basis For Using An Effective Small Step Change Strategy

Abstract

This paper develops the cost of change function under the Continuous Improvement (CI) paradigm advocated by quality gurus such as Deming, Taguchi, and Shingo. CI is considered to be focusing on frame bending or minor changes while Organizational Change (OC) is considered to be focusing on frame breaking or major changes. The cost of change function is modified to be a discrete function incorporating a monitoring cost component and a doing cost element, which leads to a better understanding of the multiple tradeoffs: a) between the number of smaller steps to be taken to achieve the desired or planned change and the total cost of change, and b) between the total cost of change and the time needed to achieve the desired change. It is proposed to seek validation of the modified cost of change function by interviewing senior management personnel, who have project management and/or change management experience, such as managing six-sigma projects.