Formula for Change

The Formula for Change was created by Richard Beckhard and David Gleicher and is sometimes called " Gleicher's Formula". This formula provides a model to assess the relative strengths affecting the likely success or otherwise of organisational change programs.

D x V x F > R

Three factors must be present for meaningful organizational change to take place. These factors are:
D = Dissatisfaction with how things are now;
V = Vision of what is possible;
F = First, concrete steps that can be taken towards the vision.

If the product of these three factors is greater than
R = Resistance,

then change is possible. Because of the multiplication of D, V and F, if any one is absent or low, then the product will be low and therefore not capable of overcoming the resistance.

To ensure a successful change it is necessary to use influence and strategic thinking in order to create vision and identify those crucial, early steps towards it. In addition, the organization must recognize and accept the dissatisfaction that exists by communicating industry trends, leadership ideas, best practice and competitive analysis to identify the necessity for change.

Some documentation also refers to the resistance to change as the cost of change. It is then subdivided into the economic cost of change (monetary cost) and the psychological cost of change. What this tries to demonstrate is that even if the monetary cost of change is low, the change will still not occur should the psychological resistance of employees be at a high level and vice versa. In this case the formula for change is represented as:

D x V x F > C(e+p)

What this allows managers to do is to isolate the actual problem areas of change and develop unique strategies specifically designed to resolve the correct form of resistance.

References

* Beckhard, R 1969 "Organization Development: Strategies and Models", Addison-Wesley, Reading, MA.
* Smith, A 1998, "Training and Development in Australia", Butterworths, Sydney