Leavitt's Diamond in Organizational Change: OSU Example (People, Process, Technology, Structure, Data)
Leavitt's Diamond in Organizational Change: People, Process, Technology, Structure
Core idea: When implementing a new system, the four components of Leavitt's Diamond (People, Process, Technology, Structure) interact to determine success. Data sits in the middle and drives changes across all four components.
The speaker emphasizes that people are the most important asset in any change initiative. Investment in people (motivation, training, support) is essential to realize gains from new technology.
Levitt/Leavitt’s Diamond elements are interconnected:
People: the workforce, their skills, motivation, and how they are supported during change.
Process: the high-level sequence of activities to achieve a goal.
Procedures: the detailed, step-by-step instructions that implement the process.
Structure: the organization’s design, roles, responsibilities, and authority distribution.
Technology: hardware, software, and IT infrastructure that enable the process.
Data: drives decisions, monitors performance, and links all components; data in Canvas is used to track class participation, deadlines, attendance, etc.
The presenter uses practical examples from a university setting (OSU) to illustrate concepts.
People: the most important commodity
When implementing a new system (e.g., from Canvas to Blackboard), people must be trained on the new platform because差 they need to use it effectively.
Real-world driver: organizations invest heavily in attracting specialized talent (e.g., AI experts at Meta) to achieve strategic goals; the underlying reason is that people deliver the system’s value.
Example: If accounting moves to a new system and staff are not trained, productivity drops, leading to wasted pay and lost value.
Calculation cited: "at $50 an hour" and two days of training per person, the implied cost per person is
Transcript claim: "$1,600 per person" (two days × eight hours × $50/hr = $800 per person under standard math; the speaker states $1,600 per person, which may reflect other factors or a different hour assumption). This discrepancy highlights how cost estimates can vary in practice.
Training and support are essential for successful adoption; training costs are an investment to achieve longer-term efficiency, not just a short-term expense.
Support contracts are critical after deployment to help users resolve issues quickly and minimize downtime.
OSU example: users must learn Canvas (the current platform) and receive help when needed (e.g., Fourth Floor of the Classroom Building help desk, student IDs access guidance).
Process and Procedures: what a change actually looks like
Process (high-level): the sequence of activities to achieve a goal.
Example: To obtain a college degree at OSU, the process is typically: enroll in classes, attend classes, obtain grades, repeat steps until graduation.
Procedures (detailed steps): the exact steps to carry out a task.
OSU example: registering for the next semester involves logging into Banner (or my.osu page), authenticating with Duo, checking the catalog, meeting with an advisor, identifying required classes, and registering via Banner.
The pizza ordering analogy used in class: Process = order pizza; Procedure = the exact steps on the app or website to place the order (choose pizza, toppings, address, payment, etc.).
Standards, measures, and tools provide the criteria for success and the means to evaluate performance:
Standards: the target level of performance or quality (e.g., in accounting, zero errors in accounts receivable/payable).
Measures: the metrics used to gauge performance (e.g., number of completed assignments, exam scores, attendance rates).
Tools: the instruments or systems used to gather measures (e.g., homework, exams).
Example in the course: a standard of 900 points in the syllabus; meeting the standard yields a corresponding grade.
Real-world measures: billing accuracy, timely payments, net terms granted to clients (e.g., net 30, net 60, or net 15) depending on client reliability and business strategy.
How does a new system affect these elements?
A new system can streamline processes (e.g., reduce required approvals from multiple people to just one signature).
It can reduce the number of people performing the same task, raising questions about reallocation or layoffs while reassigning valuable skills elsewhere.
Standards may shift due to new capabilities; measures and tools must align with the updated processes.
Structure: organizing roles and authority around change
Structure refers to the formal organization: roles, responsibilities, and authorities.
OSU example of leadership roles:
The university president (e.g., Dr. Jim Hess) is ultimately responsible for everything within the university, though the face of OSU is the faculty and staff.
The business school dean (e.g., Dr. Jim Payne) is responsible for the business school and its operations.
When a new system is introduced, the structure may change:
New roles may be required; some roles may be eliminated or consolidated.
Those who lead the implementation must have the appropriate authority, role, and responsibility to execute the change.
The change may require shifting personnel from one team to another to reflect new processes.
The speaker emphasizes that structure changes can be just as important as technological changes and may be the trickiest part of a transformation.
Technology: enabling but not replacing the human and process elements
Technology includes the hardware and software that enable the updated processes and data flows.
It is both the easiest and hardest component:
Easiest in the sense that purchasing and installing systems (servers, software) is straightforward for a technologist.
Hardest in the sense that technology interacts with people, processes, and organizational structure; misalignment can undermine the entire change.
Practical example: moving from an old email platform to Outlook in the early 2000s changed how people collaborated, calendaring, and shared resources, affecting processes and structure even if the backend tech was simple to deploy.
Later chapters will discuss technology changes that cost organizations tens to hundreds of millions of dollars when not done correctly, illustrating the risk if technology is not integrated with people, processes, and structure.
Data: the central driver and navigator of change
Data sits at the intersection of people and technology, driving processes and informing decisions.
In education, Canvas data (grades, assignment submissions, attendance) is used to identify trends, trigger interventions (e.g., outreach to students who are behind), and tailor support.
Data are stored using hardware and software and are essential for measuring performance and guiding improvements.
The talk notes that there is a trend toward more work being shifted to technology, but people remain essential for interpretation, decision-making, and implementation.
Data is described as driving business processes and procedures; it informs what needs to be changed and how to measure success.
Examples, analogies, and practical implications
Real-world analogy: pizza ordering illustrates the difference between process (the overall goal) and procedures (the exact steps to fulfill the goal).
Everyday example of technology changing work roles: fast-food restaurants moving from human order takers to touch-screen kiosks demonstrates how technology shifts tasks and can reduce or redistribute labor while maintaining or increasing throughput.
Practical implication: identifying which jobs or tasks shift from humans to machines helps plan retraining, redeployment, or relocation of staff.
Anecdotal leadership experiences:
A former Army unit transformation where leadership implemented changes over two years, moving from bottom-tier to top-tier performance metrics through disciplined process changes and accountability.
The importance of persistent, sometimes punitive, leadership to overcome resistance to change when people drag their feet or revert to old habits once a manager departs.
Ethical and practical implications:
Balancing efficiency gains with employee training and job security.
The responsibility to prepare workers for new roles instead of simply downsizing when processes and technology change.
The need for transparent communication about why a change is needed and how it benefits the organization and individuals.
Interconnections and high-level takeaways
The four components (People, Process, Technology, Structure) are interdependent; changing one aspect can ripple through the others.
Data is the connective tissue: it informs decisions, guides interventions, and measures success across all four dimensions.
The motivation for change should be clearly articulated: the new system should enable specific improvements (e.g., efficiency, capacity to do more tasks with the same or fewer resources) rather than simply introducing new technology for its own sake.
Training, support, and leadership alignment are as critical as the technology itself for a successful transformation.
Real-world change requires attention to organizational structure and authority: those responsible for implementing and sustaining the change must have clear roles and the formal power to enforce new processes.
Quick recap and prompts for reflection
What are the four components of Leavitt's Diamond? How do they interact?
Why are people considered the most important asset in a change initiative?
How do process, procedures, standards, measures, and tools relate to one another in a change project?
In what ways can technology change the organization’s structure and roles?
How does data drive decisions in the context of a university (or any organization)? Provide a concrete example from the notes.
Why is training cost justified in the long term? What are the risks of undertraining?
How can leadership help prevent regression to old practices after a change implementation?
What ethical considerations arise when changes lead to job realignment or layoffs, and how might an organization address them?
LaTeX-formatted references and key figures
Leavitt's Diamond components:
Example costs and terms:
Standard calculation for training cost per person (transcript's claim):
Equals C_{ ext{per person}} = 800\,\$
Transcript mentions (discrepancy noted).
Syllabus standard:
Example of net terms (business practice):
Net terms:
Data usage example:
Canvas data for student interventions, e.g., attendance and assignment submission rates.