Internal Change Management And Communication Across .
Internal Change Management and Communication AcrossBorders And Cultures- Denmark & BrazilByLouise RosaCulture, Communication & GlobalizationOrganization & LeadershipLatin American Area Studies2014
AbstractInternal Change Management and Communication AcrossBorders And Cultures - Denmark & BrazilThis thesis seeks to investigate how culture affects change management andcommunication within an organization present in both Denmark and Brazil. To dothis an academic discussion of how an international organization present inDenmark and Brazil should consider cultures influence on change management andcommunication, was created. This thesis chose Novozymes as a case, as theirinternal change management and communication has been investigated within theDanish headquarters in a former project. Thereby being able to use the findings ofthe former project as points of considerations for how Novozymes might improveor adapt their strategy in order to successfully implement changes in Brazil.The focus lays on culture and change is due to the fact that the premise of theglobalized market makes change and development is a necessity in order to becompetitive. The globalized market has also made organizations expand acrossnations. Thereby one organization is present in more than one country and severalcultures. Therefore it is interesting to know how different cultural backgroundsinfluence the organizations especially in regards to internal change communication.Consequently the focus of this thesis will be on internal change management andcommunication across borders cultures within Novozymes in Denmark and Brazil,as both change and culture is a vital part of the globalized world of today.The problem formulation is as follows:“How should Novozymes manage and communicate changes across borders andcultures within the company to ensure a successful implementation of changemanagement initiatives?”The thesis is working from a base in critical realism as it is the underlying structuresof culture and how that affects communication and change that is sought toilluminate to answer the problem formulation. The problem formulation is based intheory, thereby applying the deductive approach to find the best strategy for changeimplementation and change communication internally within Novozymes betweenDenmark and Brazil.A single case study has been applied as the focus is on one organization;Novozymes and their internal change management and communication acrossDanish and Brazilian borders and cultures. This means that there will be nocomparisons to other organizations.
Seven experts has been interviewed using the semi-structures interview approach, inorder to create an academic discussion. Three of them are specialized in changemanagement and communication, three are specialized in Latin American areastudies, and one is a consultant within the field of change management andtherefore have first-hand experience implementing changes.For this investigation two sets of theory has been chosen; one based in culture andintercultural communication and the other based in change with John P. Kotter’seight-stage process of creating major change as the main theory on change.This thesis has, on the basis of an academic discussion amongst experts, comparedto theory answered the problem formulation by finding a recommendation for howNovozymes should implement and communicate changes across the borders andcultures of Denmark and Brazil.
Table of Content1. Introduction . 11.1 Problem Formulation . 21.2 Project Design . 31.3 Analytical Frame . 32. Method . 42.1 Work Progress . 42.2 Methodology . 52.2.1 Philosophy of Science . 52.2.2 Paradigms . 62.3 Research Design. 82.4 Case Design . 92.5 Method Triangulation . 102.6 Interviews . 112.6.1 Interviewees . 122.6.2 Telephone and Skype Interview. 132.6.3 Interview Questions . 142.6.4 Interview Transcription . 152.7 Interview Analysis . 152.8 Document Analysis . 152.9 Data Collection . 172.10 Feasibility. 172.11 Applying Theory . 172.12 Limitations . 183. Theory . 183.1 Literature Review. 183.2 Culture. 203.2.1 Culture in Business . 223.2.2 Hofstede . 243.2.3 Organizational Culture . 273.2.4 Intercultural communication . 293.2.5 Intercultural Communication Competencies (ICC) . 313.2.6 Communication across cultures . 333.3 Change Management . 353.3.1Change Implementation . 353.4 Change Management Approaches . 363.4.1 The Ten Keys to Change. 363.4.2 Kotter’s Theory of Leading Successful Change . 40One . 41Two. 42Three . 43Four. 44Five . 44Six. 46Seven . 47Eight . 48A
4. The Former Project: . 495. Analysis. 515.1 Analysis part one. 525.2 Analysis part two . 70One . 72Two . 75Three . 77Four . 79Five . 80Six . 87Seven . 89Eight . 916. Analysis Reflections . 947. Conclusion . 958. Perspectivation . 100Bibliography . iLiterature Sources: . iArticles: . iiiFormer Project: . ivInternet sources: . ivInterview data: . ivB
1. IntroductionThe world is becoming more interconnected through technological advances interms of enabling faster movement of data, goods and people across nationalborders. International organizations are now common. People are interacting acrossnational, ethnic, religious and cultural backgrounds. In other words interculturalcommunication has become common (Samovar et al. 2012:1-2).Cultural diversity is a reality that cannot be denied in today’s business world.Otherwise, misunderstandings and mistrust will thrive and bring obstacles toorganizational success. However when managed efficiently cultural diversity canbring opportunities that benefits organizational success (Moodian 2009:35-36).“You live in an era where intercultural communication skills are not justan asset; they are a requirement.”(Samovar et al. 2012:4).There are different approaches to researching intercultural communication, forexample by focusing on business communication in connection to the internalcommunication of an organization, whether it be domestic or international. It couldalso focus on marketing, handling conflicts or management. (Samovar et al. 2012:23). In this thesis intercultural communication will be connected to changemanagement within an organization present in Denmark and Brazil – Novozymes.This thesis is meant as a further development of a previous project; ManagingChange in Novozymes – Internal Change Management Communication (Possert,Rosa & Bronk 2013). The project investigated Novozymes' internal communicationstrategy, focusing on change management and communication. Novozymes hasdevelopedacommunicationstrategy called VOICE.Investigating theirimplementation of the VOICE and analyzing it against Kotter’s eight steps ofleading change. It was also found that Novozymes had not implemented the VOICEmodel globally within the company due to cultural differences. This is what thisthesis seeks to investigate further.1
This thesis will therefore investigate the best way to implement the VOICE modelin Brazil focussing on the cultural difference between Denmark and Brazil. Thethesis does not take a viewpoint from inside the organization but seeks to find theoptimal way for Novozymes to implement changes across borders and cultures,thereby using theory and advice from experts.The reasoning behind this topic is that in the globalized business world, companiesand organizations have to adapt to constant changes within the market to ensure acompetitive advantage. This is reliant on the firm’s ability to change and therebyimplement new initiatives in a good and efficient way. Company managers have toidentify, plan and deal with changes in their environment and guide their employeesin adapting to the changes. Thereby considering the employees’ side of changewhich may be different due to differences in cultural backgrounds. Several studiesand researchers are focusing on change management and communication. Threemain theories have been created on how to implement changes in an organizationsuccessfully. Jick, Lewin and Kotter are the developers of the tree main theories onorganizational change.There has been found no studies with a direct coupling between culture and changemanagement and communication have been made, within an internationalorganization, studying how culture should be taken into regards whencommunicating internally within an organization across borders and cultures. Thisis why this thesis will focus on that particular issue.1.1 Problem FormulationThe considerations outlined in the introduction lead me to the following problemformulation:“How should Novozymes manage and communicate changes across borders andcultures within the company to ensure a successful implementation of changemanagement initiatives?”2
1.2 Project Design1.3 Analytical FrameThe figure above shows the project design - the outline of the thesis as a whole. Inorder to provide the reader with a deeper understanding of the investigation, thenext figure outlines the analysis strategy.3
2. MethodThis chapter presents the scientific methods applied to the research as well as theway this thesis writing process was approached. The foundation of which is madethrough the paradigm chosen, as the paradigm is a set of beliefs that consists ofontology, epistemology and methodology that will direct the research (Guba1990:18-19).2.1 Work ProgressThe starting point of this thesis is change management communication and crosscultural communication and it is working from the iterative process. The intentionwas to corporate with an organization and gain specific knowledge of real lifesituations that has an impact on corporate communication and culture. Hence,several companies were contacted in the hopes of finding a collaborate agreement,starting with Novozymes. However, none of the contacted companies had theresources to take on a thesis student. Therefore the aim of the thesis was changed tofind a way international organizations should incorporate culture into their changeinitiatives across the entire organization. Specifically focusing on how an4
international organization, with their headquarters situated in Denmark andsubsidies in Brazil, should consider the cultural differences of the two cultureswhen initiating change projects. Thus Novozymes was chosen again as the formerproject presents knowledge of how they implemented changes within the Danishheadquarters. Thereby choosing to analyze this topic from an academic discussion.By means of interviews with professors in the field of change communication andmanagement, intercultural communication and Latin American studies as well as aconsultant working with implementing change initiatives.2.2 MethodologyMethodology outlines the scientific approach taken to answer the problemformulation.2.2.1 Philosophy of ScienceThe subject matter of the investigation must be determined as either being objectiveand a natural phenomenon or human made. That is if the subject matter can bechanged by human actors it is not a natural phenomenon and therefore notobjective. This is determined by ontology (Bryman 2008:18). The discussion of thesituation or objective is independent of human action and is on the ontological plan(Buch-Hansen and Nielsen 2007:12).Epistemology determines what constitutes ample knowledge. The main concernhere is how the subject matter is investigated and measured to detect the valuesthereof (Bryman 2008:13). It is about what is recognized as knowledge and how toachieve knowledge.Guba & Lincoln define ontology as a determining question of what is reality andknowledge of that reality. They define epistemology as a determining question ofthe relationship between the reality and the knowledge thereof and how it isperceived. Therefore objective knowledge of how things are and work in reality iswithin ontology and assumed knowledge or subjective knowledge of how onepresumes things work, falls within epistemology (Guba & Lincoln 1994:108).5
Methodology is defined by Guba & Lincoln as the researchers way of conductingthe investigation from what (s)he believes is possible to know. This is not just aquestion of choosing either a qualitative or quantitative approach, but a question ofbasic beliefs – paradigms (Ibid).2.2.2 ParadigmsAccording to Guba and Lincoln, paradigms are belief systems that defines theindividual views the world and its own position in it and how it relates to it. Theparadigms are based in principles and assumptions of ontology, epistemology andmethods. The paradigms define the legitimately of the investigation (Guba &Lincoln 1994:107-108).Guba & Lincoln argues that in their opinion all paradigms are constructed andinvented by humans and are therefore not free from error. Therefore there is not oneparadigm that is more right than the others. It is simply a matter of argumentation(Guba & Lincoln 1994:108).Positivism is according to Guba & Lincoln known as naive realism in its ontologyas the assumption is that “ reality is assumed to exist, driven by immutable naturallaws and mechanisms.” Thereby positivism does not take context and time intoconsideration (Guba & Lincoln 1994:109). Positivism is dualistic and objectivisticin its epistemology as “The investigator and the investigated "object" are assumedto be independent entities, and the investigator to be capable of studying the objectwithout influencing it or being influenced by it.” (Guba & Lincoln 1994:110). Inthis paradigm the findings are considered to be true if they can be replicated, as wellas valid as the investigator is not assumed to influence the findings. Themethodology of positivism is experimental and manipulative, which is testedempirically under controlled conditions (Ibid).Postpositivism or Critical Realism as it is also known, is critical in its view ofreality as the ontological view is that the way reality is perceived is flawed due to6
human flaws, whereby any assumptions of reality is imperfect and must beexamined in a critical manner. Guba & Lincoln describes the epistemology ofpostpositivism as modified dualist/objectivist as the investigator is critical andobjective. The findings are not regarded as true, even if they can be replicated sincethey can be falsified. The methodology of postpositivism is collecting moresituational information in order to illuminate the underlying structure of people’sactions from their own point of view (Ibid).Constructivism is relativistic in its ontology as reality is viewed as sociallyconstructed and socially experienced as well as subjected to changes. There are noabsolute truths according to this paradigm. The epistemology of constructivism istransactional and subjectivist according to Guba & Lincoln as the investigatedobjects as well as the investigator influence the investigator’s presumptionsinfluences the outcome of the investigation. Thereby the conventional distinctionbetween ontology and epistemology disappears, according to Guba & Lincoln. Themethodology of constructivism are hermeneutical and dialectical as the investigatorinteracts with the respondents in order to understand the social construction that theinvestigator becomes a part of (Guba & Lincoln 1994:110-111).To answer the problem formulation, critical realism is chosen, as it is the underlyingmechanisms of the organization that is investigated in order to reveal how and whyemployees behave and how they will react to changes, which is influenced byculture. Critical realism does believe in absolute and objective truths as the world isever changing. This means that the results and the conclusions that have derivedfrom this study may not apply years from now (Bryman 2008:14-17).The viewpoint of critical realism is that knowledge is socially constructed wherebythe do not accept truths as absolute as they derive from a social construction ofperception. Therefore the underlying structures of the social reality must beinvestigated to understand how knowledge is perceived and why people act the waythey do (Wahyuni 2012:71). The underlying structures can be found in the differentcultural background as that is a determinacy of behavior, which is what is sought tobe understood from this investigation, as to answer the problem formulation.7
Reality is viewed as existing through three domains: The empirical domain, whichis concerned with experience and observation. The factual domain, which consistsof all things and actions, experienced or not experienced by humans. The realdomain, which consists of the underlying structures. The underlying structurescannot be observed directly however they are the foundation for the incidents thatcan be directly observed and experienced in the factual domain. Critical realists areconcerned of the epistemological fallacy, which is reducing reality to knowledge ofreality. As well as the ontological fallacy which would be to reduce knowledge toreality (Buch-Hansen and Nielsen 2007:24).Critical realism is closest to the researcher’s viewpoint as positivism for example isconcerned with finding objective and absolute truths as it is strongly connected tonatural sciences. Positivism seeks to test and measure theories quantitatively, toensure that the research can be repeated and that the findings are generalizable(Wahyuni 2012:71). Positivism is therefore not suited for this investigation as thesubject matter revolves around human behavior and the cultural values electionofinterpretivism/constructivism as it only evaluates the human interpretation ofhuman behavior and not the underlying structures that has an influence on thatbehavior (Bryman 2008:15-16). Interpretivism/constructivism takes in to regard theindividual’s experience of an experience and recognize that it is unique and that allknowledge therefore is subjective and does not seek an absolute or objective truth(Wahyuni 2012:71). However, it does not reveal the underlying structures this thesisseeks to uncover, which is why it has been disregarded in this thesis.2.3 Research DesignThe research design is based either on a quantitative or qualitative strategy. Thequantitative strategy works with numerical data and focus on the generalizability ofthe results. The qualitative strategy works with words and deducing the subjectivemeaning of the words and the reality of which they are connected to. Thereby thequalitative strategy seeks to gain a deeper understanding of one subject and less onthe generalizability of the results (Bryman 2008:22-23). The qualitative research8
strategy was chosen for the investigation of how Novozymes should communicateand manage change across cultures regarding the implementation of changeinitiatives, to gain a deeper knowledge thereof as well as the underlying structuresthat may possibly influence the behaviour of the employees. The investigation doesnot seek to generalize the findings.2.4 Case DesignThe case study design is a detailed and systematic enquiry that entails details of thecomplexity of the case, and is what will be applied here. Case studies are usuallyapplied within a qualitative design strategy as it provides a more profoundunderstanding of the subject matter. It is nevertheless possible to apply thequantitative strategy to the case study; however, this will not be done in thisinvestigation (de Vaus 2001:230).A case design is usually build around a city or a country, an individual or a team, acompany, a happening or decision making processes and what influences themwithin an international organization like in this case (de Vaus 2001:220).The case design can take two different approaches; the single case designapproach, where the investigation focus on for example one organization like inthis research where the focus is on analysing how one organization should considercultural differences in their internal communication and implementation of changes.The other approach is the multiple case design approach where several cases areinvestigated and compared in analysis. The single case approach is designed toprovide a deeper comprehension of the subject matter, which is why it is chosen forthis investigation (de Vaus 2001:51).Bent Flyvbjerg outlines five misunderstandings about case study research. Firstcontext-independent knowledge is regarded as prized higher than contextdependent practical knowledge. Second case study cannot contribute to scientificprogress, as there cannot be made generalizations. Third a case study design cannotbe used for a complete research process. Fourth it is biased to the researchers9
opinions. Fifth generating theory from a case study is too difficult (Flyvbjerg2006:221).According to Flyvbjerg, all knowledge that derives from studying human behavioris context-dependent (Ibid). He describes case study research as a good learningprocess for the researcher, as it is a good way of gaining an in-depth understandingof human behavior in reality. He emphasizes that by conducting case studiesconcrete experiences are made, which is something that other methods lack.Flyvbjerg argues that a context-independent theory simply does not exist, wherebyall theories are essentially context-dependent, and context-dependent knowledge iswhat case study research is producing (Flyvbjerg 2006:223). The aim of this case itto find a recommendation for what Novozymes should consider whencommunicating changes across cultures within the organization, therefore theknowledge that is sought after is context-dependent, especially due to the culturaldifferences between Denmark and Brazil.The case can be looked at either through an embedded view or a holistic view. Theembedded view is where each element, component or level is investigated, whereasthe holistic view is investigating the case as a whole. Thereby the holistic view doesnot take subunits’ perspectives in to regards, whereby the embedded view is appliedto this thesis as it is the subunits of the organization that is being investigated andnot the organization as a whole (de Vaus 2001:220-221).2.5 Method TriangulationThe use of several methods, known as
management and communication have been made, within an international organization, studying how culture should be taken into regards when communicating internally within an o
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