1. TRANSFORMATIONAL CHANGE

2. Learning Objectives
To explore a framework that categorizes different types of organizational change efforts with emphasis on the features of transformational change
To understand three kinds of interventions against the background of transformational change, integrated strategic change, organization design, and culture change.

3. Characteristics of Transformational Change
Triggered by Environmental and Internal Disruptions
Industry discontinuities
Product life cycle shifts
Internal company dynamics
Change is aimed at Competitive Advantage
Uniqueness
Value
Difficult to imitate

4. Characteristics of Transformational Change
Systemic and Revolutionary Change
Evolutionary growth – Incremental change
Revolutionary growth – Radical change
Demands a New Organizing Paradigm

5. Characteristics of Transformational Change
Driven by Senior Executives and Line Management
Envisioning
Energizing
Enabling
Change involves Significant Learning & Innovation

6. Integrated Strategic Change (ISC)
Integrated Strategic Change ……… 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.

7. Integrated Strategic Change (ISC) ~ Key Features
Strategic Orientation(strategy & design)
Creating the Strategic Plan (strategic change capability)
Integrating Individuals and Groups into the Process

8. The Integrated Strategic Change Process
Strategy S1
Strategy S2
Strategic
Change
Plan
Organization O1
Organization O2
Implementation
Strategic Analysis
Strategic Choice

9. ISC Application Stages
Strategic Analysis
Assess the readiness for change and top management’s ability to carry out change
Diagnose the Current Strategic Orientation
Strategic Choice
Top management determines the content of the strategic change
Designing the Strategic Change Plan
Development of a comprehensive agenda to achieve the change
Implementing the Strategic Change Plan

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

11. Organization Designs

12. Organization Design Application Stages
Clarifying the Design Focus
Create the overall framework, begins with examining strategy and objectives and determining organization capabilities needed
Designing the Organization
Results in an overall design for the organization, detailed designs for the components, and preliminary plans for how to implement
Implementing the Design
Puts the new structures, practices and systems into place, draws heavily leading and managing change methods

13. The Concept of Organization Culture
Artifacts
Norms
Values
Basic
Assumptions

14. 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

15. Competing Values Approach
Flexibility & Discretion
Clan
Adhocracy
External Focus & Differentiation
Internal Focus & Integration
Hierarchy
Market
Stability & Control

16. 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 sensitivity