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.
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
Characteristics of
Transformational Change
o Systemic and Revolutionary Change
 Evolutionary growth – Incremental change
 Revolutionary growth – Radical change
Demands a New Organizing Paradigm
Characteristics of Transformational
Change
 Driven by Senior Executives and Line Management
Envisioning
Energizing
Enabling
 Change involves Significant Learning & Innovation
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.
Integrated Strategic Change
(ISC) ~ Key Features
 Strategic Orientation(strategy &
design)
 Creating the Strategic Plan
(strategic change capability)
 Integrating Individuals and Groups
into the Process
The Integrated Strategic Change Process
Strategy
S1
Organization
O1
Strategic Analysis
Strategic
Change
Plan
Implementation
Strategy
S2
Organization
O2
Strategic Choice
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
Organizational Design
Conceptual Framework
 Strategy
 Structure
 Work Design
 Human Resources Practices
 Management and Information Systems
Key Point
 Fit, Congruence, Alignment among
Organizational Elements
Organization Designs
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
The Concept of Organization Culture
Artifacts
Norms
Values
Basic
Assumptions
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
Competing Values Approach
Internal Focus & Integration
Flexibility & Discretion
Clan
Adhocracy
Hierarchy
Market
Stability & Control
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