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Strategic Change Interventions

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1. Transformational Change 2. Continuous Change 3. Transorganizational Change

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Transformational Change -

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1. Integrated Strategic Change 2. Organization Design 3. Culture Change

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Transformational Change Triggers

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1. Industry discontinuities 2. Product life cycle shifts 3. Internal company dynamics

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Competitive Advantage Criteria

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- Uniqueness of Resources: financial, reputational, technological, human - Value - Difficulty to imitate

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Characteristics of Transformational Change

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1. Triggered by environmental and internal disruptions 2. Aimed at competitive advantage 3. Systemic and revolutionary 4. Demands a new organizing paradigm 5. Driven by senior execs and line management 6. Involves significant learning

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Integrated Strategic Change - Key Features

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1. Analyzes org's strategic orientation 2. Creating the strategic plan, gaining commitment and support, planning implementation, and execution are all one integrated process 3. Individuals and group are integrated into the process to create higher levels of shared ownership and commitment

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Integrated Strategic Change - Application Stages

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1. Perform strategic analysis 2. Exercise strategic choice 3. Design strategic change plan 4. Implement the plan

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Organization Design - Definition

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comprehensive intervention that configures the org structure, work design, human resource practices, and management and information systems to guide members' behaviors in a strategic direction

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Organization Designs

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Mechanistic - support control and efficiency Organic - promote innovation and change

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Organization Culture

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stable and coherent set of beliefs about the org and its environs that works well enough to be taught to others

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Organization Culture - Elements

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1. Artifacts: visible symbols 2. Norms: behaviors 3. Values: what ought to be 4. Basic Assumptions: taken-for-granted, nondebatable and nonconfrontable

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Organization Culture - Influences on Performance

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1. indirectly affects ability to implement chage 2. indirectly affects ability to operate in different countries 3. Directly affects implementation of business strategy

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Approaches to Diagnosing Org Culture

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1. Behavioral Approach: assess behaviors that can be observed 2. Competing Values Approach: assess in terms of how resolves set of value dilemmas 3. Deep Assumptions Approach:

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Situations needing Cultural Change

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1. if culture doesn't fit changing environs 2. competitive industry changes rapidly 3. company is mediocre or worse 4. if the firm is growing rapidly

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Cultural Change - Application Stages

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1. Formulate a clear strategic vision 2. Display top-management commitment 3. Model culture change at the highest levels 4. Modify the org to support org change 5. Select and socialize newcomers and terminate deviants 6. Develop ethical and legal sensitivity

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Continuous Change Interventions

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1. Self-Designing Orgs 2. Learning Orgs 3. Built-to-Change Orgs

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Requirements for Adaptive Change

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1. Alter features of the org to fit with org strategy 2. Change process needs to be dynamic and iterative 3. Calls for constant org learning 4. Must attend to the interests of multiple stakeholders 5. Needs to occur at multiple levels throughout firm

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Self-Design Strategy - Application Stages

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1. Lay foundation: Acquiring knowledge, diagnosing, and valuing 2. Design: minimum specification design 3. Implement and Assess

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Organizational Learning

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- enhance org's capability to acquire and develop new knowledge - emphasize org structures and social processes - associated with human resources

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Knowledge Management

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- how knowledge can be organized and used to improve performance - emphasis on tools and techniques for turning info into useful knowledge - associated with information systems function

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Characteristics of Organizational Learning

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1. Done to achieve organization purposes 2. Shared or distributed among members of the org 3. Learning outcomes are embedded in the org's systems, structures and culture

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Learning Organizations - Contingencies

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1. Structure 2. Information systems 3. Human resources practices 4. Org culture 5. Leadership

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Organization Learning Processes

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1. Discovery: find errors/gaps 2. Invention: devise solutions 3. Production: implementation 4. Generalization: draw conclusions and extend knowledge

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Three Types of Learning

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1. Single-Loop: adaptive; improve status quo 2. Double-Loop: generative; change status quo 3. Deuterolearning: Learn how to learn

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Methods for Discovering Theories in Use

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1. Dialogue 2. Action Map 3. Left-Hand, Right-Hand Columns 4. Ladder of Inference

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Internal Mechanisms for Generating Knowledge

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- Communities of Practice: informal networks - Creative Abrasion: have diverse perspectives rub against each other to develop innovative solutions

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Methods for Knowledge Distribution

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1. Self-Directed 2. Knowledge Services and Networks: organized channels 3. Facilitated Transfer: specific people

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Built-to-Change Orgs - Design Components

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1. Talent Management 2. Reward Systems 3. Structure 4. Information and Decision Processes 5. Leadership

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Built-to-Change Orgs - Application Stages

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1. Create a Change-Friendly Identity 2. Pursue Proximity: get closer to future environs 3. Build Orchestration Capability: gain ability to implement change effectively 4. Establish Strategic Adjustment as a Normal Condition 5. Seek Virtuous Spirals: pursue temporary competitive advantages

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Transorganizational Change Interventions

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1. Mergers and Acquisitions 2. Strategic Alliances 3. Networks

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Mergers and Acquisitions - Precombination Phase

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1. Search for and select candidate 2. Create an M&A team 3. Establish the business case 4. Perform due diligence 5. Develop merger integration plans

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Mergers and Acquisitions - Operational Phase

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1. Day 1 activities 2. Operational and technical integration activities 3. Cultural integration activities

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Mergers and Acquisitions - Managing the Operational Phase

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1. Implement merger integrations sooner and quickly 2. Communicate integration activities clearly and promptly to variety of stakeholders 3. Work together to solve problems and address customer needs 4. Continually assess implementation to identify problems and needs

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Strategic Alliance vs Joint Venture

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Strategic Alliance - any collaborative effort between 2+ orgs Joint Venture - two orgs jointly own and operate a specially-created third org

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Strategic Alliance - Application Stages

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1. Alliance Strategy Formulation 2. Partner Selection 3. Alliance Structuring and Start Up 4. Alliance Operation and Adjustment

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Transorganization Development (Creating the Network)

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1. Identification Stage: who should belong 2. Convention Stage: should a network be created 3. Organization Stage: How to organize for performance 4. Evaluation Stage

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Properties of organization networks

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1. The behavior of a network is sensitive to small differences in its conditions 2. Networks display "emergent" properties which are can't be explained by analyzing the parts 3. Variety of behaviors can emerge from members performing tasks and making decisions according agreed-upon rules

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Managing Network Change

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1. Create Instability in the Network: structure vs agency 2. Manage the Tipping Point: law of the few, stickiness of message, power of context 3. Rely on Self-Organization

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