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Change Management

Change Management. Lecture 3 Why Organizations Change. Why change?. Change is a risky activity – many organizational changes fail or do not realize their intended outcomes. This raises the question of why the desire to change is so prevalent? Pressure to change comes from:

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Change Management

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  1. Change Management Lecture 3 Why Organizations Change

  2. Why change? • Change is a risky activity – many organizational changes fail or do not realize their intended outcomes. • This raises the question of why the desire to change is so prevalent? • Pressure to change comes from: • External, environmental pressures • Internal, organizational pressures

  3. Images of pressure for change • How does a: • Director • Navigator • Caretaker • Coach • Interpreter • Nurturer • understand why organizations need to change?

  4. External, environmental pressures

  5. External, environmental pressures

  6. Internal organizational pressures

  7. Internal organizational pressures

  8. Why organizations may not change: Five frictions • Distorted perceptions • Hubris, cognitive biases, constructivism etc. • Dulled motivation • Costs of change, cannibalization costs, cross subsidy comforts • Failed creative response • Speed or complexity or vision is lacking • Political deadlocks • Departmental politics creates blockages • Action disconnects • Leadership inaction • Embedded routines are sticky • Cultural values resist change

  9. Questions • To what extent can you identify environmental pressures propelling your organization toward change? • To what extent do you have influence over whether and how to change? • Which of the reasons to avoid change have you experienced or seen? • How easy is it to raise issues in your organization about the rationale for engaging in specific changes? Is there a dominant rationale? Why? • What personal criteria might you adopt for initiating a specific change “for the right reasons”?

  10. Case: Chipping away at Intel • What were the different changes at Intel over the first 3 years of Bartlett’s tenure? • Which environmental pressures were experienced by Intel? • Which internal pressures? • Are there other pressures you can identify? • What overall conclusions do you draw about why Barrett made the changes he did? Which issues were dominant? Why? • What pressures might Barrett face in the future? • What advice would you give for how to cope with these change pressures?

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