1. THE CHANGING ORGANISATION Drivers of Change
Session 3

2. Triggers for Change External triggers - PEST Political Economic Social
Technological

3. Political and Economic Factors
Suppliers
Currency exchange rates
Employment rates
Wage rates
Government economic policies
Other countries economic policies
Changes from public to private ownership
Government leg
Government ideology
International law
Universal rights
Wars
Local regulations
Taxation
Trade unions
Competitors

4. Social-cultural and technology
Demographic changes
Lifestyle changes
Skills availability
Attitudes to work
Attitudes to minority groups
Gender issues
Willingness to move
Environmental issues
Information technology
The internet
Computerisation of processes
New production processes
Changes in transport technology
Business ethics

5. Triggers for Change Internal Triggers Change of management
Change of strategy and objectives
Acquisition and merger
Downsizing and reorganisation
Rationalisation

6. Force Field Analysis Restraining Forces Driving Forces
Anxiety about job security
Fresh challenge in job
Change seems less stimulating
Improved rewards
Fear of loss of power, status
Increased job discretion

7. The trap of success (Nadler et al in Hayes (2007) p94)
Sustained
success
Success
Syndrome
Codification
Arrogance
Complacency
Complexity
Conservatism
Learning is
disabled
Outcomes
Decreased
customer focus
Increased cost
Slower
Less innovation
Do more
of the same
Declining
performance
Denial &
Rationalisation
Environmental
disequilibrium
The DEATH spiral