Burke-Litwin Model of Organizational Performance and Change

Burke-Litwin is a system science model that describes the linkages among the key factors that affect performance, and determine how change occurs in an organization. Through the use of this model system, engineers obtain data on what organizational factors to change and why. Higher level factors (blue boxes) have greater weight in effecting organizational change; a change in any variable will ultimately affect every other variable. The Figure below, Burke-Litwin Model of Organizational Performance and Change, depicts the system science approach:

source: Mitre.Org

This Performance and Change Model, developed in 1992 by two organizational change consultants, W. Warmer Burke and George H. Litwin, is a tool used to understand an organization's component parts and how they relate to each other in a time of change. A common reason for a change initiative failing is all areas of the organization affected by the change are not accounted for. Therefore, using this model can reveal what areas of the business are affected and how they are interrelated. The model also demonstrates the hierarchy of factors within an organization and hence the flow of influence from one factor to the next. The model is an example of ‘open systems theory’, which suggests change comes from external influences. The authors describe the model as a mechanism that portrays “…the primary variables that need to be considered in any attempt to predict and explain the total behavior output of an organization, the most important interactions between these variables, and how they affect change”. There are four groups of elements within an organization; the external environment, transformational factors, transactional factors and performance. Each group then contains various elements of the organization. The diagram above demonstrates which elements belong in which group, how they interact with each other and the overall hierarchy of an organization.

Burke-Litwin Model - The Three Levels of Change
This Burke-Litwin Model identifies three levels of changes in an organization which are derived by 12 factors or drivers of change.

• Transformational Change: Transformational factors are deeply embedded processes and characteristics of the organization. Any change that occurs to these factors will have substantial consequences to the rest of the organization. It is also true that any other change will require these factors’ input and hence the arrows go in both directions. Lasting change to any of these factors is likely to sweep change throughout the organization. These factors will be most strongly affected by the external environment and will also have the strongest influence on transactional factors.
• Transactional Change: Transactional factors refer to day-to-day operations within the organization. The authors argue these factors are strongly affected by management, rather than leadership. Change in these factors is only likely to lead to lasting change if, in turn, the transformational factors are also affected.
• Individual and Organizational Performance – This factor is the overall output of the organization. This can be represented in many different ways, commonly turnover, productivity, customer satisfaction etc.

The Burke-Litwin model - Drivers of Change
Burke-Litwin believe environmental factors to be the most important driver for change. Indeed, most change can be traced back to external drivers for change. Important elements of organizational success, such as mission and strategy, leadership and organizational culture, are often impacted by changes that originate outside the organization.

Identifying and Dealing with Drivers for Change

• External Environment: This includes such factors as markets, legislation, competition and the economy. All of these will have consequences for organizations, and, as a change manager, it is vital that you continually scan the environment for issues that will affect you and your team. For example, in

the world of accountancy, International Accounting Standards and International Financial Reporting Standards will have a significant impact on the way companies manage their accounts and report their results. In the public sector, legislative changes across health, local government and other services have a direct impact on the work organisations are required to carry out. 2. Mission and Strategy An organisation’s mission articulates its reason for existing. It is the foundation upon which all activity should be built. The strategy then sets out, in broad terms, how the organisation will go about achieving its mission. Very often, the strategy will be developed in light of environmental change, and will have a significant impact on the work you do. As a change manager, you need to understand change in strategy and be able to communicate the implications to your staff. 3. Leadership This considers the attitudes and behaviour of senior colleagues and how these behaviours are perceived by the organisation as a whole. The way in which change is implemented and accepted through the organisation will be largely influenced by the top team. Does your team believe that senior colleagues are committed to change, or is it just another initiative that will disappear in six month’s time? 4. Organisation Culture Organisation culture can be described as “the way we do things around here”. It considers the beliefs, behaviours, values and conventions that prevail in an organisation. Culture change does not happen overnight. It evolves over time as a result of many other changes in the organisation. As a manager, you should keep in mind the desired state for the organisation, in terms of how you expect people to behave (and not to behave), and what your organisation values as important. You need to ensure that your behaviour fits with these expectations at all times, and that you ‘walk the walk’. 5. Structure Very often, changes in strategy can lead to changes in the way the organisation is structured. This can impact on relationships, responsibilities and ways of working. Your job is to assess the impact of the structural change and ensure your team understands why it is required, and what it means for them. 6. Work Unit Climate This considers employees’ perception of their immediate colleagues and working environment. Our immediate working environment is often what shapes our view of the organisation as a whole, and influences the extent to which we feel satisfied in our jobs. Changes to the immediate working environment need to be managed sensitively, as they are likely to invoke a range of emotional and political responses from staff. This is particularly the case where change involves moving location, a change in personnel, or a change in terms of conditions of service, such as working hours. 7. Task Requirements and Individual Skills/Abilities Change at a higher level in the organisation will often require changes in the work carried out and the skills available in the team. As the change manager you need to assess whether: all the right skills are in place; if they can be developed; or, if you need to bring them in from outside the team. 8. Individual Needs and Values Changes to team membership can mean a change in the team dynamic. In a perfect world, we would be able to recruit the exact fit for our teams, in terms of personal style, abilities and skills mix. However, in reality it is not always possible, and it is your job to identify any risks in this areas and mitigate them as best you can. 9. Employee Motivation Considers the significance of individual and organisational goals. Motivation is key to effective change. The real challenge is to maintain motivation throughout a change project, particularly when change is often not well-received by those affected.

Pros and Cons of Burke-Litwin Model

Advantages of Burke Litwin Model of Change.

• This is a comprehensive model covers all the important factors into account to explain why change is happening, what is driving change and helps in formulating change strategy.
• This model explains factors of change on the basis of cause and effect relationship which helps to have complete understanding about organizational change.
• This model explains the meaning and distinction between transformational and transactional level of change leadership in an organization.

Limitations and Disadvantages of Burke Litwin Model of Change

• The critics of this model are of the view that over simplification of different factors of change results into producing sub factors which actually makes it a more complex model.
• This model only focuses on what drives change and fail to explain how to implement change.
• It puts external environment factors on the top which drives change which is not always the case. There are internal factor as powerful factors which lead to organizational change.