4/9/2020

Strategic Change Interventions

Strategic Change Interventions

• Business Planning
• Cultural Change
• Large-Scale Interventions
• Organizational Transformation
• Strategic Planning

1
 4/9/2020

Organization Transformation

Key Takeaways

• To explore a framework that categorizes

different types of organizational change
efforts with emphasis on the features of
transformational change
• To present three large-scale organizational
change interventions: culture change, self-
design, and organization learning and
knowledge management

2
 4/9/2020

Characteristics of Transformational
Change
• Triggered by Environmental and Internal
Disruptions
• Aimed at Competitive Advantage
• Systemic and Revolutionary Change
• New Organizing Paradigm
• Driven by Senior Executives and Line
Management
• Continuous and Significant Learning and Change

Integrated Strategic Change

• Integrated Strategic Change(ISC) is a

deliberate coordinated process that leads to
gradually or radically systemic realignments
between the environment and a firm’s
strategic orientation resulting in improvement
in performance and effectiveness.
• Heavy Planning Involved here

3
 4/9/2020

Integrated Strategic Change

• Integrated Strategic Change(ISC) - Key

Features
• Strategic Orientation
• Creating the Strategic Plan
• Integrating Individuals and Groups into the
Process

Integrated Strategic Change

4
 4/9/2020

Organizational Design

• Conceptual Framework
– Strategy
– Structure
– Work Design
• Human Resources Practices
• Management and Information Systems Key Point
• Fit, Congruence, Alignment among Organizational
Elements

Organizational Design

5
 4/9/2020

Culture Change
The Concept of Organization Culture
Artifacts
Norms
Values

Basic
Assumptions

Diagnosing Organization Culture

• Behavioral Approach
– Pattern of behaviors (artifacts) most related to
performance
• Competing Values Approach
– Pattern of values emphasis characterizing the
organization
• Deep Assumptions Approach
– Pattern of unexamined assumptions that solve
internal integration and external adaptation
problems well enough to be taught to others

6
 4/9/2020

Competing Values Approach

Flexibility & Discretion
Internal Focus & Integration

Clan Adhocracy

Hierarchy Market

Stability & Control

Culture Change Application Stages

• Establish a clear strategic vision

• Get top-management commitment
• Model culture change at the highest level
• Modify the organization to support change
• Select and socialize newcomers; downsize
deviants
• Develop ethical and legal issues

7
 4/9/2020

Continuous Change

Self-Designing Organizations

• Systemic change process altering most

features of the organization
• Process is ongoing, never finished—
continuous improvement and change
• Learning as You Go—on-site innovation
• Need support of multiple stakeholders
• All levels of the organization adopt new
strategies and change behaviors

8
 4/9/2020

The Self-Design Strategy

Laying the Foundation

Acquiring Implementing
Knowledge and
Designing
Assessing

Diagnosing Valuing

Organization Learning & Knowledge

Management

• Organization Learning interventions

emphasize the structures and social
processes that enable employees and
teams to learn and share knowledge
• Knowledge Learning focuses on the tools
and techniques that enable organizations
to collect, organize, and translate
information into useful knowledge

9
 4/9/2020

Organization Learning:
An Integrative Framework
Organization Learning Knowledge Management Competitive
Strategy

Organization Organization Organization Organization

Characteristics Learning Processes Knowledge Performance
Structure Discovery Tacit
Information Invention Explicit
Systems Production
HR Practices Generalization
Culture
Leadership

Characteristics of a
Learning Organization
• Structures emphasize teamwork, information
sharing, empowerment
• Information systems facilitate rapid acquisition and
sharing of complex information to manage
knowledge for competitive advantage
• Human resources reinforce new skills and
knowledge
• Organization culture encourages innovation
• Leaders model openness and freedom to try new
things while communicating a compelling vision

10
 4/9/2020

Organization Learning Processes

• Single loop learning

– Most common form of learning
– Aimed at adapting and improving the status quo
• Double loop learning
– Generative learning
– Questions and changes existing assumptions and
conditions
• Deuterolearning
– Learning how to learn
– Learning how to improve single and double loop
learning

Organization Learning Processes

11
 4/9/2020

Discover Theories in Use

• Dialogue
• Left-Hand, Right-Hand Column
• Action Maps
• The Ladder of Inference

The Ladder of Inference

I take ACTIONS based on
my beliefs

I adopt BELIEFS about the world

I draw CONCLUSIONS

I make ASSUMPTIONS based on

the meanings added

I add MEANINGS (cultural and personal)

I select DATA from what I observe

I OBSERVE data and experiences

12
 4/9/2020

Organization Knowledge

• Generating Knowledge
– Identify knowledge for competitive strategy
– Develop ways to acquire or create that
knowledge
• Organizing Knowledge
– Put knowledge into a usable form
– Codification and Personalization
• Distributing Knowledge
– Making knowledge easy to access, use & reuse

Transorganizational Change

13
 4/9/2020

Transorganizational Rationale
• Transorganizational strategies allow
organizations to perform tasks that are too
costly and complicated for single organizations
to perform
• Goods and services are exchanged between
organizations and transactions occur
• Transorganizational strategies work best when
transactions occur frequently and are well
understood

Transorganizational Systems

• Members maintain their separate

organizational identities and goals
• Tend to be under organized and member
organizations are loosely coupled
• Different from mergers and acquisitions
• Network interventions may be appropriate

14
 4/9/2020

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 transorganizational systems,
such as alliances and networks, because at
least one of the organizations ceases to exist.

Merger and Acquisition Rationale

• Diversification
• Vertical integration
• Gaining access to global markets, technology,
or other resources
• Achieving operational efficiencies, improved
innovation, or resource sharing

15
 4/9/2020

Strategic Alliances

• When two organizations formally agree to

pursue a set of goals
• There is sharing of resources, intellectual
property, people, capital, technology,
capabilities or physical assets
• Common alliances are licensing agreements,
franchises, long-term contracts, and joint
ventures

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) and managing change within an
established network

16
 4/9/2020

Application Stages for Transorganizational

Development

Managing Network Change

• Create instability in the network

• Manage the tipping point
– The Law of the Few: Salespeople, Mavens,
Connectors
– Stickiness
– The Power of Context
• Rely on self-organization

17