Mergers and Acquisitions : A Road Map for Effective Organizational Change ( ALA 2013 Conference Presentation )

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Title:
Mergers and Acquisitions : A Road Map for Effective Organizational Change ( ALA 2013 Conference Presentation )
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Presentation slides
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English
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Keith, Brian W.
Botero, Cecilia
Tennant, Michele
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ALA Annual Conference
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Chicago, IL
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University of Florida
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University of Florida
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Applicable rights reserved.
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AA00016004:00001

Full Text

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Mergers and acquisitions: A roadmap for effective organizational change

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Brian W. Keith Associate Dean, Administration and Faculty Affairs, George A. Smathers Libraries Cecilia Botero Associate Dean of the George A. Smathers Libraries and Fackler Director of the Health Science Center Libraries Michele R. Tennant Assistant Director, Biomedical and Health Information Services, Health Science Center Libraries Bioinformatics Librarian, UF Genetics Institute

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These slides and a complete bibliography are available at http://ufdc.ufl.edu/AA00016004 (sources cited)

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Thank you to our sponsors LLAMA (Library Leadership & Management Association) ACRL (Association of College and Research Libraries)

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Agenda Trends in Library Change Concepts and recommendations from scholarship on change and culture The case of the successful integration of the UF HSC Libraries and the main campus libraries Pearls of wisdom

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Trends in Library Change

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Changing Library Environment Economic Factors and Accountability Data Curation and management Technology Expectations Online learning Staffing

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rin g Meeting, slide 19. http://www.arl.org/storage/documents/publications/mm13sp kenney.pdf

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Staff Changes rin g Meeting, slide 21. http://www.arl.org/storage/documents/publications/mm13sp kenney.pdf

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What does the literature tell us about Change and Change Management?

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Change Examples : W ork process changes N ew technology implementations R eorganizations S trategy changes R elocations Outsourcing Retirements L eadership changes Downsizing

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Change Estimates are up 50% of all change efforts fail, often as a result of poor change leadership. Negative outcomes, include: sunk costs, organizational ineffectiveness, customer dissatisfaction, low morale, high turnover, and wasted resources. ( Kotter; & Quinn)

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Change These failures are commonly related to human issues, not technical issues. Successful organizational adaptation is increasingly reliant on generating employee support and enthusiasm for proposed changes, rather than merely overcoming resistance. ( Kotter, et al.; & Piderit)

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Change Readiness Reflected in organizational members' beliefs, attitudes, and intentions regarding the extent to which changes are: Needed or beneficial, and T he organization's capacity to successfully make those changes. At the individual level, readiness is the cognitive precursor to the behaviors of either resistance to, or support for, a change effort. ( Armenakis, et al.)

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Change Readiness Attitudinal reactions are driven by feelings of: U ncertainty L oss of control, and F ear of failure. ( Caldwell, et al.; & Fedor)

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Cognitive Adaptation Theory Individuals with certain traits handle change best: H igh levels of self esteem (e.g., a high sense of self worth), O ptimism (e.g., a highly positive outlook on life), and P erceived control (e.g., a view of life and situations as being under personal control). ( Wanberg, et al.)

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Change Readiness Employees may be reluctant to incorporate new procedures, technology, or other changes into their work if they are anxious about their ability. To lessen employee resistance, managers should ensure that adequate training is provided to employees and should take steps to bolster employees' confidence in their abilities. ( Coch, et al.; & Wanberg, et al.)

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Perceived Organizational Support (POS) POS employee. POS is valued as assurance that aid will be available from the organization when it is to deal with stressful situations. ( Self; & George, et al.)

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Perceived Organizational Support Socio emotional and material support to employees who are going through stressful adaptation processes during organizational change are symbols of care, respect, benevolent motives, favor, and commitment toward employees and are positively related to fairness judgments POS should produce a felt obligation to care about organization reach its objectives. ( Liu, et al.; & Rhoades, et al.)

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Perceived Organizational Support A conscientious effort should be undertaken to build organizational support prior to implementing change However in organizations with low POS where change is needed immediately, change agents should not expect a favorable response from employees and there should be immediate efforts to simultaneously build organizational support. ( Self)

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Perceived Organizational Support Employees expect adequate support for the change from management Failure to provide such support will be seen as a failure due to lack of effort and represents an integrity based trust violation. ( Weiner; & Kim, et al.)

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Perceived Organizational Support When change is seen as resulting from management volition and without perceived necessity, managers often bare much more responsibility for the change and face more obstacles when attempting to implement such changes. ( Lscher, et al.; Kim, et al.; & Rousseau, et al.)

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Perceived Organizational Support When change is attributed to external factors that are unavoidable and uncontrollable by management, employees tend to be more lenient toward management. When management is not seen as responsible for initiating the change, failure to provide change support is less likely to harm the reciprocal relationship. ( Bies, et al.; Kim, et al.; & Self)

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Organizational Justice and Fairness Perceptions of fairness i ncreased by: Providing advanced notice of changes, S howing respect for individuals, B eing open to and considerate of participants' concerns and P roviding individuals the opportunity for inputs that can affect ultimate outcomes ("voice ( Brockner, et al.; Korsgaard, et al.; & Folger)

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Organizational Justice and Fairness When change participants perceive that implementation was handled fairly, reactions to the change and to the organization are more favorable. Process fairness increases : I ndividuals openness to a particular change, and A bsolute level of commitment to the organization. ( Novelli, et al.; Schweiger, et al.; Wanberg, et al.; & Brockner, et al.)

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Change Management Model of Individual Level Change Process (1948): 1. U nfreeze, 2. M ove or change, and 3. R efreeze. ( Lewin)

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Change Management In subsequent study, the manner in which management treats and involves employees during change has received the greatest amount of attention and has been shown to be a powerful determinant of individuals reactions to major organizational changes. ( Beer; Brockner, et al.; & Lind, et al.)

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Change Management Consistently organizational level change process models involve: Motivating the change by developing commitment and readiness to it, Creating a vision by describing the outcomes of the change, Developing political support by addressing the power and influence dynamics of the proposed change, and Managing the transition by moving from the current to the future desired state, sustaining momentum by carrying the change effort to full completion. ( Cummings, et al.)

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Change Management Kotter famously defined an eight step process for organizational change : 1. Establish a sense of urgency, 2. F orm a guiding coalition, 3. C reate a vision, 4. C ommunicate the vision, 5. E mpower others to act on the vision, 6. P lan for and create short term wins, 7. C onsolidate improvements to create more change, and 8. I nstitutionalize new approaches. ( Kotter)

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Communication Is Key A primary mechanism for creating readiness for change is the message for change. The readiness message should incorporate two issues: 1. Need for change, that is, the discrepancy between the desired end state and the present state, and 2. I ndividual and collective efficacy (i.e., the ability to change). ( Armenakis, et al.)

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Communication Global and local change agents need to be clear, early on, about the precise ramifications the change program will have for change recipients. They should explain how any threat can be dealt with, and at the same time introduce and highlight the personal benefits change could have for employees, beyond its importance for the organization. ( Oreg, et al.)

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Communication While immediate supervisors can play an important role in helping employees to interpret the change message and assess its impact a change initiative must originate with global change agents perceived as the instigators of the initiative, not the immediate supervisors. (Larkin, et al.; & Self)

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Communication pronouncements proclamations, slogans, and themes. Specific change support behaviors include providing necessary resources and training and helping affected employees adjust to the job situation. ( Dutton, et al.; Beer; Kotter; & Caldwell et al.)

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Transformational Leadership (TL) behaviors: to get them to see a higher vision, and Encourage them to exert themselves in the service of achieving that vision. (Burns)

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Transformational Leadership TL Dimensions include : C reating and communicating a vision, C reating empowering opportunities, P ersonal credibility that causes followers to trust, admire, and identify with the leader, T he intellectual stimulation of followers, and T ending ( House; Yukl; Bass; & Sashkin)

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Transformational Leadership Transformational leadership, over time, gains expectations ( Herold, et al.)

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Transformational Leadership Managers should invest special attention in creating a supportive and trusting organizational culture if they expect cooperation in times of change. (Oreg, et al.)

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Change Management (CM) Transformational Leadership(TL ) CM focuses on the here and now, the specific change at hand and from a tactical point of view. TL refers to a longer term relationship established between the leader and followers, built up over many interactions and having a more strategic orientation. ( House, et al.; & Herold, et al.)

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CM and TL Leader behaviors in relation to a specific change do not alone determine the extent followers will support change. The impact of change management behaviors is a leadership and the level of impact the change has ( Herold, et al.)

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CM and TL Positively associated with change commitment whenever change management was low. Helpful when both change management and job impact were high. I t is only when change management was high and job impact was low that transformational leadership was not related to change commitment. ( Herold, et al.)

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CM and TL Bottom Line: Transformational organizational change regardless of their specific behaviors in planning or implementing that change ( Herold, et al.)

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Distribution of Change Effort Employees compare the turmoil created by the change for themselves and for others in their work groups. Having to shoulder a disproportionate amount of the change can result in less desirable commitment related outcomes This may represent a major problem if the change burden falls disproportionately upon those the organization considers the most talented or critical employees. (Fedor) ( Fedor)

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Organizational Culture learned by a group as it solved its problems of external adaptation and internal integration, which has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, (Schein, 2010)

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Culture Several theories of organizational culture, but culture is not a the organization. (Smircich)

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Culture Three fundamental levels at which culture manifests itself: observable artifacts, values, and basic underlying assumptions (Schein, 1990)

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Culture In libraries, culture can be exemplified by a shared understanding of : How the library and its activities align with the mission of the organization it serves The unique information needs of users and how to meet them The values and culture of the organization the library serves How the library accomplishes decision making The day to day work of the library (Desson)

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Health Science and Medical Libraries

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UF Health Science Center Libraries UF Health Science Library serves six colleges: Dentistry Medicine Nursing Pharmacy Public health and health professions Vetmed

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Changing Environment in Medical and Health Science Libraries CTSA (Clinical and Translational Science Awards) Interdisciplinary collaboration and education Community Outreach Informatics Reporting structures

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Trends In HSC Library Reporting Relationships eal th College and Research Libraries 71(5):467 94. 2010

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Survey of HSC Directors HSC libraries that report to HSC administration have and value a culture that provides autonomy and decision making authority, with decreased bureaucracy and streamlined decision making.

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So w hat happened at UF?

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B ackground UF library system as of 2008 consisted of 3 systems: 1. Lawton Chiles Legal Information Center 2. Health Sciences Center Libraries (HSCL) Health Science Center (Gainesville) Borland branch library (Jacksonville) Veterinary Medicine Reading Room (Gainesville)

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B ackground UF library system as of 2008 consisted of 3 systems: 3. George A. Smathers Libraries (Smathers) Special and Area Studies Collections Government Documents and Maps Humanities and Social Sciences Library Marston Science Library Departmental Branches Architecture and Fine Arts Education Journalism Music

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B ackground Historically, there was extensive collaboration between the Smathers Libraries and HSCL, particularly in the areas of: T he acquisition of library resources, Tenure & Promotion, and Library Management System

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Integration P lanning Fall 2008, the HSCL and Smathers Libraries were directed by the President to integrate the 2 systems as soon as feasible. Negotiated an implementation of July 1, 2009.

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Integration P lanning October 2008, Dean and HSCL Director agreed to work on an integration proposal to jointly submit to the Provost that would allow the HSCL retain needs.

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Integration P lanning On January 21, 2009, employees of the Smathers and HSCL libraries were enlisted to Integration working groups: Administrative Services (Human Resources and Financial Services) Access Support (ILL, Circulation, Library Wide Policies) Budget Preparation Development (Grants, PR) Digital Services/Institutional Repositories Facilities Public Services/Collections Management Systems Technical Services

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Integration P lanning Asked to look at common functions and services in the two library systems and identify possible efficiencies; and also identify policies to be harmonized or new procedures that will need to be developed. The recommendations of the Work Groups were to be used by the Dean and Director for the consolidated integration plan as a basis for implementation of the integration.

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Integration P lanning Conceptually: The overriding goal of the HSCL Smathers integration was to ensure that services to our users were not compromised and it was hoped that work efficiencies and service quality would improve. A report from each work group was submitted by February 25th.

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Integration P lanning Working Group recommendations fell into 4 general categories: Fully Integrate New support for HSCL More integrated decision making and communications No Integration

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Integration P lanning Fully Integrate: Administrative Services (Human Resources and Financial Services)

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Integration P lanning New support for HSCL: Fundraising, Grants and Public Relations Digital Services/Institutional Repositories Facilities Management

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Integration P lanning More integrated decision making and communications: Access Support (ILL, Circulation, Library Wide Policies) Public Services/Collections Management Technical Services

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Integration P lanning No Integration: Systems (IT)

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Integration P lanning In March 2009, Dean and Director, with input from other library staff, drafted the integration proposal to present to the Provost. The report covered:

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Integration P lanning The report was posted on the internet and blog established for feedback from library employees and others on campus. The plan was approved by the Provost, with an effective integration date of July 1, 2009.

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Implementation On July 1, the HSCL Director became Associate Dean and Director of the HSCL, reporting directly to the Dean of University Libraries who in turn reports to the Provost Director retained an non reporting relationship with the SVPHA

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Implementation Beginning July 1, 2009, the Smathers Fiscal Services office produced, per HSCL specifications, and publicly posted monthly budget reports for the HSCL and maintained segregated fiscal accounts for the HSCL to ensure funds were not comingled between the HSCL and the rest of the integrated libraries.* Director retained authority over funds of the HSCL.* Communicating a sense of ownership to the HSC colleges.

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Outcomes No layoffs Minimal but strategic reassignments No reallocations of recurring funds

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Outcomes Integration allowed us to pool resources in those areas that we serve in common, which allowed the integrated library system to devote more time and resources to the areas that we each uniquely serve.

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Successes @ UF dual career program, but as a part of the University Libraries, the HSCL was able to place a Basic Biomedical Sciences librarian. a Clinical Research Translational Science Institute).

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Successes @ UF The centralization of the fiscal & human resources management functions provided a net savings of 1 HSCL FTE that was then repurposed to serve in a Access Services position, which in return, freed 1 full time librarian to serve the area of consumer health and community outreach.

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Successes @ UF The HSCL has increased the support provided to the clinical enterprise : Librarians participate in rounding and morning reports, and Consumer Health librarian assisting patients at the internal medicine clinics

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Successes @ UF The combined system realized an increase to the campus research enterprise contribution to the Libraries. The increased funding was added to the base HSCL material budget.

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Successes @ UF Smathers Libraries provides funds to the HSCL for a variety of purposes, including a contract with an architect to begin planning for a phased renovation project. At the same time, the Dean has tirelessly pursued renovation funds.

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Successes @ UF Significant pay inequities existed for the HSCL employee salaries when compared to the Legal Information Center and the Smathers Libraries. This represented a major obstacle to a successful integration. faculty and staff, and implemented market equity plans (primarily, using HSCL funds).

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Successes @ UF The HSCL gained advocacy from the library Development Office including a grants manager. The HSCL had no such resources prior to integration and effectively competed for donors versus HSC units. Recently, the HSCL Director position was endowed!

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Successes @UF The head of the new system, as a Dean, is positioned to serve as champion for the health libraries and integration may actually improve the standing of the libraries in the health center.

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Challenges @ UF The biggest challenge was cultural.

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How do we assess the UF based on the literature?

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The UF Case External Causation No explanation or vision from initiating leader Provided deadline (urgency)

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The UF Case Fell to implementing leadership to provide: Vision Process

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The UF Case Library leadership at various levels brought: Transformational Leadership POS Opportunities for voice

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The UF Case The result was a general sense of fairness, efficacy and inevitableness.

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The UF Case Change was probably easier because we were able to minimized negative consequences Negatively, their was disproportionate effort required from some units and individuals

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The UF Case Ultimately successful, and seamless/unobvious to external stakeholders, because of: Staff support and effort, and Library leadership

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The UF Case The success has positioned the combined organization to handle, externally driven and internally imposed change

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Pearls of Wisdom Success is possible with effective process, planning and communication. Integration can address historic issues, inequities, and inefficiencies, and can allow leveraging of resources.

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Pearls of Wisdom Get on with it and implement to the best advantage of the libraries: patrons and staff are what matters and will suffer if leaders are not devoted. Trust must be developed through tact, honesty and effectiveness.

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Pearls of Wisdom Be candid about disadvantages to both units and mitigate these as best as possible. Be candid about advantages to both units and celebrate progress towards these.

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Pearls of Wisdom Clarify the scope of authority. Consider maintaining distinguishable resources. Collaborate on important decisions.

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Pearls of Wisdom Periodically assess the integration and results.

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Bibliography Kotter, J. P. (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review, 73(2), 59 67. Kotter J., & Cohen, D. (2002) The Heart of Change. Boston, MA: Harvard Business School Press. Larkin T. J., & Larkin, S. (1994) Communicating Change: Winning Employee Support for New Business Goals. New York: McGraw Hill, Inc. Lewin K. (1958). Group decision and social change. In E. E. Maccoby, T. M. Newcomb, & E. L. Hartley, (Eds.), Readings in social psychology (pp. 197 211). New York: Holt, Rinehart, & Winston. Lind E.A., & Tyler T. (1988). Procedural justice in organizations. The social psychology of procedural justice (pp. 173 202). New York: Plenum Press. Translate to Perceptions of Fair Treatment? The Moderating Roles of Change Attributions and Conscientiousness. Journal of Applied Behavioral Science, 48(4), 441 462. Lscher, L., & Lewis, M. W. (2008). Organizational change and managerial sense making: Working through paradox. Academy of Management Journal, 51, 221 240 McGowan, J. J. (2012). Tomorrow's academic health sciences library today. JMLA, 100(1), 43 46. Miller, V. D., Johnson, J. R., & Grau, J. (1994). Antecedents to willingness to participate in a planned organizational change. Journal of Applied Communication Research, 22, 59 80. Novelli, L., Jr., Kirkman, B.L., & Shapiro, D.L.. (1995). Effective implementation of organizational change: An organizational justice perspective. In Cooper CL, Rousseau DM (Eds.), Trends in organizational behavior (Vol. 2, pp. 15 36). New York: Wiley Nussbaumer, A. & Merkley, W. (2010). The path of transformational change. Library Management, 31 (8/9), 678 689. Nutefall, J. E., & Chadwell, F. A. (2012). Preparing for the 21st century: Academic library realignment. New Library World 113(3/4), 162 173.

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Bibliography continued Self, D. R., Armenakis, A. A., & Schraeder, M. (2007). Organizational Change Content, Process, and Context: A Simultaneous Analysis of Employee Reactions. Journal Of Change Management, 7(2), 211 229. Wanberg, C. & Banas, J. (2000). Predictors and outcomes of openness to changes in a reorganizing workplace. Journal of Applied Psychology, 85(1), 132 142. Weiner B. (1993). On sin versus sickness: A theory of perceived responsibility and social motivation. American Psychologist, 48, 957 965. Whelan Berry, K., Gordon, J. R., & Hinings, C. R. (2003). Strengthening organizational change processes: Recommendations and implications from a multilevel analysis. The Journal of Applied Behavioral Science, 39(2), 186 206. Yukl, G. A. (1989). Managerial leadership: A review of theory and research. Journal of Management, 15, 251 289.

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Mergers and acquisitions: A roadmap for effective organizational change University of Florida http://ufdc.ufl.edu/AA00016004 Thank you!