Transorganizational Change Fili An Presentation based on Cummings & Worley, 2005 Thomson/South-Western book presentations

Meet “Question Baby” She’s just curious about everything Especially business. After getting married Mr. and Mrs. Question had a baby. I know what you’re thinking “how come the baby looks Asian?” Hmm… Don’t tell Mr. Question!

Mergers and Acquisitions Merger - the integration of two previously independent organizations into a completely new organization Acquisition - the purchase of one organization by another for integration into the acquiring organization. Distinct from strategies for collaboration, such as alliances and networks, because at least one of the organizations ceases to exist .

Merger - the integration of two previously independent organizations into a completely new organization

Acquisition - the purchase of one organization by another for integration into the acquiring organization.

Distinct from strategies for collaboration, such as alliances and networks, because at least one of the organizations ceases to exist .

Why Mergers and Acquisitions? Diversification Gaining access to global markets, technology, or other resources Achieving operational efficiencies, improved innovation, or resource sharing

Diversification

Gaining access to global markets, technology, or other resources

Achieving operational efficiencies, improved innovation, or resource sharing

Merger and Acquisition - Application Stages Pre-combination Phase Identify a matching organization Gather information about each other Plan the implementation and integration activities Legal Combination Phase Agree on the terms of the deal Get approval from regulatory agencies and shareholders File appropriate legal documents Operational Combination Phase Implementing the operational, technical and cultural integration activities

Pre-combination Phase

Identify a matching organization

Gather information about each other

Plan the implementation and integration activities

Legal Combination Phase

Agree on the terms of the deal

Get approval from regulatory agencies and shareholders

File appropriate legal documents

Operational Combination Phase

Implementing the operational, technical and cultural integration activities

Daddy. What are some famous mergers and acquisitions in Taiwan? (Daddy usually doesn’t know much about business, but I like to ask him anyway)

I know! How about Taiwanese Acer buying American Gateway? Does that count?

Hmm… Oh, Acer, right… that’s the one I was thinking about… (Yeah yeah :P if you say so)

Transorganizational systems Collaborative Strategies Two or more organizations who agree to work together to achieve their objectives Align and coordinate organization strategies, goals, structures, and processes as they become interdependent Allow organizations to perform tasks that are too costly and complicated for single organizations to perform Alliances and networks

Collaborative Strategies

Two or more organizations who agree to work together to achieve their objectives

Align and coordinate organization strategies, goals, structures, and processes as they become interdependent

Allow organizations to perform tasks that are too costly and complicated for single organizations to perform

Alliances and networks

Alliance When two organizations formally agree to pursue a set of goals. Sharing : resources intellectual property people capital technology capabilities physical assets Common alliances are licensing agreements, franchises, long-term contracts, and joint ventures

When two organizations formally agree to pursue a set of goals. Sharing :

resources

intellectual property

people

capital

technology

capabilities

physical assets

Common alliances are licensing agreements, franchises, long-term contracts, and joint ventures

Mommy. I’m hungry. Do you know any franchises where we can go eat? Mommy doesn’t like franchises, but some of them have the coolest toys!

Baby, I only know global ones. Know any in Taiwan?

Like… the Israeli franchise in Taiwan :P If you ’ re ever in Taipei … Full Israeli menu. http ://www.sababapita.com/ - 6 Branches and growing...

If you ’ re ever in Taipei …

Full Israeli menu.

http ://www.sababapita.com/ - 6 Branches and growing...

Alliance Intervention - Application Stages Alliance Strategy Formulation Clarify the business strategy and why an alliance is needed Partner Selection Leverage similarities and differences to create competitive advantage Alliance Structuring and Start-up Build and leverage trust in the relationship Alliance Operation and Adjustment 19-

Alliance Strategy Formulation

Clarify the business strategy and why an alliance is needed

Partner Selection

Leverage similarities and differences to create competitive advantage

Alliance Structuring and Start-up

Build and leverage trust in the relationship

Alliance Operation and Adjustment

Network Interventions Involves three or more companies joined together for a common purpose Each organization in the network has goals related to the network as well as those focused on self-interest Characterized by two types of change: Creating the initial network (transorganizational development) Managing change within an established network

Involves three or more companies joined together for a common purpose

Each organization in the network has goals related to the network as well as those focused on self-interest

Characterized by two types of change:

Creating the initial network (transorganizational development)

Managing change within an established network

Application Stages Transorganizational Development 19- Identification Convention Organization Evaluation Who should belong to the transorganizational System (TS)? Relevant skills, knowledge, and resources Key stakeholders Should a TS be created? Costs and benefits Task perceptions How to organize for task performance? Communication Leadership Policies and procedures How is the TS performing? Performance outcomes Quality of interaction Member satisfaction

Who should

belong to the

transorganizational

System (TS)?

Relevant skills,

knowledge,

and resources

Key stakeholders

Should a TS

be created?

Costs and

benefits

Task

perceptions

How to organize

for task

performance?

Communication

Leadership

Policies and

procedures

How is the TS

performing?

Performance

outcomes

Quality of

interaction

Member

satisfaction

Managing Network Change Create instability in the network Manage the tipping point The Law of the Few Stickiness The Power of Context Rely on self-organization

Create instability in the network

Manage the tipping point

The Law of the Few

Stickiness

The Power of Context

Rely on self-organization

Mommy, I have one more question… (And then another one after that…)

No more questions for you today, time for bed… Let other people ask some questions…