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Organizational Change

Management
Spectrum of Trouble

Change management
Sweet Spot

Simmons

Current Performance Okay Poor Performance Crisis

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Organizational Change

 The process by which an organization


moves from its present state to some
desired future state to increase its
effectiveness.

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Domains for Change
 Human Resources
 Functional Resources
 Technological Capabilities
 Organizational Capabilities

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Forces for Organizational Change
 Competitive
 Economic
 Political
 Global
 Demographic
 Social
 Ethical

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Resistance to Organizational Change
 Organizational Level
 Structure
 Culture
 Strategy
 Functional Level
 Differences in subunit orientation
 Power & conflict
 Group Level
 Norms
 Cohesiveness
 Groupthink
 Individual Level
 Cognitive biases
 Uncertainty & insecurity
 Selective perception & retention
 Habit
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Lewin’s Force-Field Theory of Change

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Incremental vs. Radical Change
Incremental Change Radical Change
Continuous Paradigm-breaking
progression burst
Affect
organizational Transform entire
part organization

Through normal
structure and Create new structure
management and management
processes

Technology Breakthrough
improvements technology

Product New products,


improvement new markets

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Stages of Commitment to Change

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General Principles of Change Leadership
(John Kotter)

 Phase One: Getting Started


 Create a sense of urgency
 Form a powerful guiding coalition
 Create a vision of what the organization will become
 Phase Two: Involving Everyone
 Communicate the vision frequently, in various ways
 Empower others to take action on the vision
 Planning for and creating short-term wins
 Phase Three: Ongoing Improvement
 Consolidating improvements and producing still more
change
 Institutionalize new approaches, reducing leader
dependence
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Organizational Capabilities
(Ghoshal & Bertlett)

 The Entrepreneurial Process


 Creating and pursuing new opportunities
 The Integration Process
 Attracting and developing competencies;
managing operational interdependencies
 The Renewal Process
 Managing continuous performance
improvement within units

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Corporate Renewal (Ghoshal & Bertlett)
 Rationalization
 Enhance individual unit’s performance
 Revitalization
 Enhance cohesion among units
 Regeneration
 Enhance continuous self-renewal capabilities

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