1. TRANSORGANISATIONAL CHANGE

2. INTRODUCTION Merging or networking with other organisations
Organisations extend their boundaries to cope with complexity and rapidly changing environment
They merge with others or acquire others to:
gain essential capabilities and resources
operate at large scale
Enter new markets
Tackle complex problems or project that single org cannot achieve
Form strategic alliances to share costs and expertise
Strategies, goals, structures etc. become interdependent
Conflicts and misunderstandings can occur

3. MERGERS AND ACQUISITIONS (M&As)
Combination of two organisations
Merger
Acquisition
Integration of two previously independent organisations into a complete new organisation
Purchase of one organisation by another for integration into acquiring one
REASONS FOR M&A’s
Diversification
Gaining access in new markets, technology or other resources
Achieving operational efficiency
Improved innovation
Resources and cost sharing
DISADVANTAGES OF M&A’s
Questionable records for success
Inadequate processes and failure to move quickly
Lack of a compelling strategic rationale
Unrealistic expectations of synergy
Conflicting corporate cultures

4. APPLICATION STAGES Pre-combination phase:
Search and select candidate – screening, regulations etc. initial agreement
Create an M&A team – Senior leaders for planning
Establish business case – vision, strategy, competitive advantage
Perform a due diligence assessment – Evaluate availability of resources, articles
Develop merger integration Plans – How the two will combine
Operational Combination phase:
Communications and actions for implementation – tasks, functions, location
Operational & technical Integration activities – structural changes, work design
Cultural Integration activities – New values and norms

5. STRATEGIC ALLIANCE
Formal agreement – to share resources, intellectual property, people, capital, technology, capabilities or physical assets
Collaborative effort (franchising, licensing agreements, joint ventures)
APPLICATION STAGES:
Alliance strategy formulation – clarify business strategy
Partner selection – search for appropriate partner (screening)
Alliance structuring and start-up (after agreement) – build and leverage trust in the relationship; contracts, governance structure, investments etc.
Alliance operation and adjustment – functioning, diagnosis and make changes

6. NETWORK INTERVENTIONS
Create networks and improve their effectiveness: various stages
Identification stage
Identify existing and potential organisation, which are best suited to achieve collective objectives
Might be difficult as some might not see the need to join together
Few organisations interested in exploring the possibility of creating a network – identify organisations meeting standards
Convention stage
Bring them together to assess whether formalizing the networks is feasible and desirable
Face-to-face meetings of potential members to explore their motivations for joining and their perceptions of activities to be performed
Sufficient levels of motivation and task consensus to form network
Organisation stage
Movement from convention into organisation
Members organize themselves for task performance
Members develop structures and mechanism to promote communication
Evaluation stage
Assess how network is performing –
Members need feedback to identify problems and begin to resolve it

7. Manage change in the established network (Communication)
Look at instabilities in networks (diagnosis) – create instability in network
Manage the tipping point: determine process, type and direction of change
Unstable network can move to a new state. Guidelines for facilitating network change:
Law of the few:
A new idea, practice spreads because of a relatively few but important roles in network
Following help to achieve awareness and credibility throughout network:
Connectors (central position, tap in different network audiences, connect quickly with many other people),
Mavens (information sinks) knowledge about particular subject
Salespeople (champions of change: influence others to try new ideas/options)
Stickiness: Message communicated must be memorable
Power of context: Message must be meaningful & relevant to network members
Move unstable networks to new
Rely on self organisation – exhibit self-organising behaviour
reduce uncertainty in environment,
establish order in functions,
leverage controls to institutionalize it (i.e. refreeze change)