1. The art of continuous change: Linking complexity theory and time-paced evolution in relentlessly shifting organizations
(Brown & Eisenhardt, 1997)
In strategy and organisation theory, change has traditionally been modeled as a punctuated equilibrium process. Explain what is meant by this process! This research study by Brown and Eisenhardt challenges this traditional view. Explain how the new view is different from the traditional view! How and why is the new view better?
Group 9: Matilda Akkola, Reetta Arokoski, Lauri Kokkila, Miikka Laitila

2. AGENDA THE CONTEXT OLD MODEL: PUNCTUATED EQUILIBRIUM MODEL OF CHANGE
THE NEW VIEW
“Semistructures”
“Links in time”
“Sequenced steps”
COMPARISON
CONCLUSION

3. The context: Multiple-product innovation
In multiple-product innovation companies innovate several products parallel
The study focuses to computer industry
Rapid changing environment
Coping with change is key to competitive success
Research Design
Multiple-case study
Dataset includes 6 companies

4. The punctuated equilibrium model of change
Change happens in two different ways
Long periods of small, incremental change are interrupted by brief periods of radical change
In the model, radical change is the focus of interest
It fundamentally changes the industry: for example DNA cloning, laptops
Radical change occurs in a stable environment, usually catalyzed by a crisis or a problem*
The disruptional phases represent opportunities for innovation and creativity
Radical change happens unpredictably and can’t be managed beforehand
The disruptional phases represent opportunities for innovation and creativity
Radical change happens unpredictably and can’t be managed beforehand
*References: Flat World Knowledge: Punctuated-Equilibrium Model. Organizational Behavior, Chapter 9.

5. The punctuated equilibrium model - Structure
In the incremental phase, change happens without affecting the deep structure of the system
“deep structure” is the set of fundamental choices that the organisation has made of how the units are organized and which basic activity patterns it will maintain *
The radical phase disrupts the deep structure and allows to recreate it
At this point, the organization has the opportunity to learn and create new structures that are better aligned with current realities
The radical phase can close for example when a dominant design for a new disruptive technology has been found
*Gersick, C.J.G. (1991) Revolutionary Change Theories: A Multi-Level Exploration of the Punctuated Equilibrium Paradigm, Academy of Management Review, 16(1),

6. The new view
Instead of focusing on radical changes, the new view is about continuous change.
Rapid and continuous change is vital for firm’s survival in high-velocity industries with short product cycles.
The continuous change and innovation become core of the company culture.
Key factors to success in new view:
Semistructure
Future probes
Past - Future linking

7. The new view - Semistructure
Key is to balance between mechanistic and organic structure
Mechanistic structure = really structured, a lot of rules and tight processes
Organic structure = no formal structure, a lot of freedom
Article finds similarities between successful multiple product companies that are:
Clear responsibilities
Sharply defined project priorities
Extensive cross-project communication
Another success factor are the non-structured parts:
i.e. no strict design process → lets the designers to develop products iteratively and flexibly
Makes it possible to change the product when the market/requirements change

8. The new view - Future probes
By looking into future, company can create a vision and multi-view strategy.
Low cost probes used to investigate future:
Experimental products and markets to give options for future.
Strategic alliances with potential and current customers.
Senior board members and long-range planners as futurists.
Informal and formal strategy meetings.
Companies not just react to the future, but they try to anticipate and create it.

9. The new view - Past & Future linking
Transition and linkages between the present and future projects have to be carefully managed.
Predictable intervals between projects:
No unexpected endings -> no issues with excess or lack of skilled people
Still room and time to fine-tune processes
Choreographed transition procedures:
Specific responsible persons for transitions
Simultaneous working of projects with old and new team members
Routine is synced to the rhythm of environment - no interruptions in the “flow”

10. The comparison OLD MODEL NEW MODEL Industry change
Incremental change interrupted by radical change
Continuous, relentless change
Company react
Disruptional phases represent opportunities
Continuous change and innovation become part of company DNA
Structure
Deep, mechanical structure in incremental phase, which is recreated during radical periods of change
Semi-structure
Industry example
The introduction of automobile
The continuous change in the computer industry

12. Comparison: Why the new view is better?
Structure
Enables continuous change, easier to match the changing requirements
Nowadays many innovations are created by combining things → this requires extensive communication and freedom within organization
Future probing
Probes, especially several ones, give managers several options for future
Probes are also effective learning devices
Past - Future linking
Effective transition procedures and directs management focus to past/future
Systematic intervals create a rhythm, which is easy to follow

13. Critique
According to the article, continuous change is vital for firm’s survival in high-velocity industries with short product cycles
Article focused on computer industry, but we see that many other industries are facing similar situation as well
We think that the “new” model has become increasingly popular, because of the fast paced change in several business environments
However, although this case study supports the new model of change, for example in another case study showed that a large number of organizational transformations were accomplished via rapid and discontinuous change*
After that, a lot of studies supporting also the equilibrium model of change has been published
*Romanelli and Tushman, Organizational transformation as punctuated equilibrium: an empirical test. Academy of Management Journal, Vol. 37. No. 5,

14. Conclusion
The punctuated equilibrium model focuses on the rapid change happening in a stable environment.
The new model consists of the continuous change in a changing environment.
The new model has three main aspects:
Semistructure
Future probes
Past – Future linking
The new model of change could be thought as an dynamic capability
Dynamic capabilities are described as “the firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments” *
*Reference: Teece, D.J., Pisano G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal. Vol.18:7. p