3. 1. Knowledge Economy - educating & learning tomorrow ?
2. Virtual organizations - rise of SME sector ?
3. Merger & Acquisition - rise of corporates?
"in times likes these,
in times likes these,
change seems to be
change seems to be
4. E- commerce – changing retail and services?
the only constant we
the only constant we
5. Digital convergence
got!
got!"
- Isaac Asimov -
- Isaac Asimov -
6. Privatizations - price fluctuations ?
...changing the way we do business tomorrow
FORCES OF CHANGE TODAY.
WHERE FACED.
4. Does change enhances the
organization's survival
chances? (i.e. is change
adaptive ?)
Does this depend on the type of change and if so: HOW?
5. The two sides of change -
Strategic Agenda for today
Technical side Human side
1.Organizational Inertia and
2. Organizational identities
Momentum
and the hazard of change
3.Organizational
Transformation
6. change threaten the
organization's survival?
What are your
experiences?
Your top 3. My top 3.
Uncertainty
Systematic
Before mindset
Lack of
communication
Big changes
demands adaptivity
7. The macro
perspectiv
on change
Before we dig into the
Base of articles
articles…What is
organizational ecology?
8. Organizational
Inertia & A Dynamic Model of Strategic
Change
Momentum Kelly & Amburgey,
1991
9. What is (structural) inertia?
The
hindrance of
change
Organization
al change/
conscious
innovation
Definition
10. In consultancy:
what would be your
first step when
facing a change
attempt in the core
features?
Airline Deregulation
Act 1978/ airline
industry - how strong
is the influence of
single variables?
13. please consider those
Core Values when working on the
Kodak case
1. Stated goals
2. Forms of authority
3. Core technology
4. Marketing strategy
14. Hypotheses. Environmental change
Results. Organizational Age
Organizational Size
Our Prior change in core features
Discussion. Cumulative changes
15. H1:
The probability of change
in strategic orientation
increases with the
occurrence of
environmental change
Environmental Change & the Probability of Change
in Core Features
16. H2
The probability of change
in strategic orientation
decreases with
organizational age
H3
The probability of change
in strategic orientation
decreases with
organizational age
H4
The probability of change
in strategic orientation
increases with prior
experience with such
Age, Size and Prior Experience & the Probability of change
Change in Core Features
17. H5:
The probability of change
in strategic orientation
increases with the
occurrence of
environmental change
Cumulative change in strategic orientation &
the Probability of Failure
18. Time for some quick
environmental Let s get some coffee!
change!
20. What is a non-
technical account?
• Identity- based resistance to
change in employment relations
disrupts organizations and
degrades performance
(p. 757) (--> study focus/
objective)
• What are organizational
identities then?
22. Hypotheses. Hazard of failure
Results. Hazard of IPO
Growth rate in market cap.
Our Outsider executive
Discussion.
23. H1:
changes in blueprints
(a)increase the hazard of
+ failure
(b)Lower the hazard of
- IPO
(c)Depress the rate of
+ growth in market
capitalization
H2:
Appointment of an
outsider as a chief
executive destabilizes
organizations less than
changes in blueprints for
+ employment relations
Overall:
Origins matter
Core feature
change implies an
alternation of
premises, values,
and routines
having been
Changes in blueprints. internalize by
employees
24. “(…) evidence that changing the organizational
blueprint diminishes chances of early success.
Specifically, change increased the odds of failure
and reduced growth in market capitalization”
Main results/findings
1. Hazard of failure:
p. 769
2. Hazard of IPO:
p. 773
3. Depress growth rates of Market capitalization:
p. 774
4. Change of CEO:
25. According the the
article:
Changes in the organizations core is dangerous because
• Reliability & accountability fall
• Raise questions about nature of the organization
• Missing opportunities during reorganization
• Degrades performance
• Destabilizes the organization
• Decreases creativity
• Increase the hazard of failure
27. Case: Fiat – Successfully Fighting Inertia
What does this case show us concerning ‘core
feature change’?
What would be a vital change management
approach?
28. 1. Can Do- Mentality
2. New CEO
3. Focus on patenting
4. Talented young team
TOWARDS A VITAL CHANGE
MANAGEMENT APPROACH –
HOW DID FIAT DO IT?
29.
30.
31. Bigger picture:
Organizational transformation and its
influencers
Communication Bottom- up or top- Legal and Membership- based
and down? regulatory context organizations
other sense-making Member of ownership
efforts involvement?
32. Additi
onal
insigh
ts
‘Meeting the challenge of disruptive change’
(Christensen & Overdorf, 2000)
Time
Resources Processes Values Culture
interaction,
Start-up phase: communication, Standards by
which employees Hard-to- change
mostly people coordination etc.
(CEO Blueprint) to transform set prios
resources into
products of
greater worth
(Core features
evolving)
33. Core lessons learned ? – Final thought
How and what does it take for us to create an environment of reliability and
accountability [inertia characteristics] in volatile [fast -CHANGing] times?
What would be a good approach to make change an opportunity rather than a
threat?
34. Does change enhances the
organization's survival
chances?
Doesis not the question whether change so: HOW? or enhances
It this depend on the type of change and if is adaptive
the survival chances.
Change is a given factor we will always face and need
to work with when wanting to maintain within the
market.
Change thus much more implies opportunities to take the
company into the next level and yes then IT DOES ENHANCE
SURVIVAL CHANCES
What I want to basically say here is that change is an inherent and important factor in our lives to day and as we want to perform on an individual level in job and private life we need to cosider how we deal with it and what possible strategies are
Maybe someone has any experiences here worth to share? Someone who were maybe tackling a project in an internship or former job marked by big changes? What were your biggest challenges here?
IPO as a change in the blueprint and employment relation as it changes the key performance indicators/ altering the
