Lecture 1

Lecture 1
Sanjeeva Perera – Visiting Lecturer

BSc (Eng) Hons, MBA, MIET
CEO – Just In Time Technologies
Lecture 1 - Types of Change MBA7024 - Change Management 1

Change Management Needs to
Change.
 As a recognized discipline, change management
has been in existence for over half a century. Yet
despite the huge investment that companies have
made in tools, training, and thousands of books
(over 83,000 on Amazon), most studies still show a
60-70% failure rate for organizational change
projects — a statistic that has stayed constant from
the 1970’s to the present.
(Source : Ron Ashkenas, HBR)

Change Management Needs to
Change.
 The content (Theories) of change management
is reasonably correct, but the managerial capacity
to implement it has been woefully underdeveloped.
In fact, instead of strengthening managers’ ability to
manage change, we’ve instead allowed managers to
outsource change management to HR specialists
and consultants instead of taking accountability
themselves — an approach that often doesn’t work.
(Source : Ron Ashkenas, HBR)

Learning Objectives.
 Open Systems view of Organisations.
 To identify the significance of internal and

external sources of change.
 To differentiate between incremental and radical

change.
 To provide a framework for “types of change”.

Organisations as Open Systems.
 Every organisation must change in order to survive,
because organisations are “open systems” and cannot
shield themselves from environmental instability.

Organisation as Open System.
ENVIRONMENT
Material
Transformation Process Outputs
People Inputs
Expertise Products/Services
Information
Financial Boundary Production, Maintenance, Boundary
Resources. Spanning Adaptation, Management. Spanning.
Source: Daft; 1998:13

Elements of external environment
 Industry sector  Financial Resources
 Raw Materials sector sector
 HR sector  Economic Conditions
 Market sector.
sector
 Government sector
 Technology sector
 Socio-cultural sector
 International sector.

Change Vs. Innovation.
 Organisational change is the adoption of a new idea
or behaviour by an organisation.
 Organisational innovation is the adoption of a new

idea or behaviour that is new to the organisation’s
industry, market or environment.

Need for Change?
 …occurs when managers are dissatisfied with current
performance or
 …they perceive an opportunity to exceed

current performance.

Need for Change?
The businessman and the fisherman story
(ambition, wealth creation, change for change's
sake, purpose of life, work and fulfillment )
 A management consultant, on holiday in a African

fishing village, watched a little fishing boat dock at the
quayside. Noting the quality of the fish, the consultant
asked the fisherman how long it had taken to catch
them.
 "Not very long." answered the fisherman.

Need for Change?
 "Then, why didn't you stay out longer and catch
more?" asked the consultant.
 The fisherman explained that his small catch was

sufficient to meet his needs and those of his family.
 The consultant asked, "But what do you do with the

rest of your time?"

Need for Change?
 "I sleep late, fish a little, play with my children, have an
afternoon's rest under a coconut tree. In the evenings,
I go into the community hall to see my friends, have a
few beers, play the drums, and sing a few songs..... I
have a full and happy life." replied the fisherman.

Need for Change?
 The consultant ventured, "I have an MBA from
Harvard and I can help you...... You should start by
fishing longer every day. You can then sell the extra
fish you catch. With the extra revenue, you can buy a
bigger boat. With the extra money the larger boat will
bring, you can buy a second one and a third one and so
on until you have a large fleet. Instead of selling your
fish to a middleman, you can negotiate directly with
the processing plants and maybe even open your own
plant. You can then leave this little village and move to
a city here or maybe even in the United Kingdom, from
where you can direct your huge enterprise."

Need for Change?
 "How long would that take?" asked the fisherman.
 "Oh, ten, maybe twenty years." replied the consultant.
 "And after that?" asked the fisherman.
 "After that? That's when it gets really interesting,"

answered the consultant, laughing, "When your
business gets really big, you can start selling shares in
your company and make millions!"
 "Millions? Really? And after that?" pressed the

fisherman.

Need for Change?
 "After that you'll be able to retire, move out to a small
village by the sea, sleep in late every day, spend time
with your family, go fishing, take afternoon naps under
a coconut tree, and spend relaxing evenings having's
drinks with friends..."

Need for Change?
 Eagle Story (Video)

Types of change/Innovation
Product Changes in the products/services offered by the
Innovation organisation; e.g. new model Toyota, new MBA, etc
Process Changes in the ways products/services

Innovation Are created and delivered; e.g. manufacturing methods
change to produce new or existing products.
Position Changes in the context in which products/services are
Innovation introduced; e.g. Lucozade (Producer of a variety of sports
and energy drinks. Provides product information along
with fitness articles).
Paradigm Changes in the underlying mental models which frame

Innovation organisational activity; On line banking; low-cost flights.

Implementation.
 Occurs when organisation members actually use the

idea.
 Resources, human energy and activity are required to
bring about change as well as capital in most cases.

Incremental Vs Radical Change
Incremental Change Radical Change.
Continuous Progression Discontinuous Progression
Equilibrium Attain New Equilibrium.
Focused change on part of Transformation encompassing all

the organisation the Organisation
Utilize existing structure and Generate new structure and

Management processes. Management processes.
New(ish) Technology Breakthrough technology.
Meet market expectations with new Create new markets with new
products/services products/services.

Strategic Advantage Through Innovation.
 Building capability to innovate is only part of the

requirements to achieve strategic advantage
through innovation.
 If innovation is not aligned to the strategy of the

organisation (assuming that an appropriate
strategy exists) then how it will contribute to the
organisation’s well being is questionable. Bessant
& Tidd (2007:21-23) offer some insights in the
following tables

Strategic Advantage Through Innovation.
Mechanism Strategic e.g.
Advantage
Novelty in product Offering Introducing the
or service. something no-one first: dishwasher
else can digital camera,
on line bank
Novelty in process Offering it in ways On line book
others can’t; sales, internet
faster, cheaper, banking.
etc
Complexity Offer something Jet Engines
others find difficult
to master
Strategic Advantage Through Innovation
Mechanism Strategic e.g.
Advantage
Legal protection of Offer something Blockbuster drugs;
IPR. others can’t do Zantac, Prozac,
unless they pay a Viagra.
licence/fee
Add to or extend Move basis of Japanese car
range of competition; e.g. producers; price to
competitive factors from price to price quality & price,
& quality, etc. shorter life cycles
(develop new
products at a
faster pace),
Mechanism Strategic Advantage e.g.
Timing First Mover advantage Amazon.com

(market share in new Yahoo
areas). Apple’s ill fated
Newton PDA
OR Fast follower flopped 5 years
advantage; before Palm Pilot
Let someone else make swept up.
the early mistakes….

Apple’s ill fated Newton PDA flopped 5 years before Palm Pilot
swept up.
The Newton is a series of personal digital assistants developed and marketed
by Apple Inc. An early device in the PDA category – the Newton originated the
term "personal digital assistant" – it was the first to feature handwriting
recognition. Apple started developing the platform in 1987 and shipped the
first devices in 1993, production officially ended on February 27, 1998.
Newton devices run on a proprietary operating system, Newton OS; examples
include Apple's MessagePad series and the eMate 300, and other companies
also released devices running on Newton OS. Most Newton devices were
based on the ARM 610 RISC processor and all featured handwriting-based
input.
The Newton was considered technologically innovative at its debut, but its
high price and early problems with its handwriting recognition feature limited
its sales. Apple cancelled the platform at the direction of Steve Jobs in
1998.

Re-write the Offer a completely new Typewriter Vs PC.
rules product or process Electric Vs Gas
concept which makes the lamps.
old way redundant
Robust/ Offer something which Boeing 737 (30+

Platform provides the platform for years old).
Design other variants… VW Beetle.
Intel processors

Transfer Recombining established Polycarbonate
across elements for different wheels; from rolling
different markets. luggage to
application lightweight micro-
contexts. scooters.
Reconfigure Rethink how bits of the Zara, Bennetton in
parts of the system work together; clothing.
process Building more effective Reebok in shoes.
networks, outsourcing;
co-ordination of a virtual
company
From rolling luggage to lightweight micro-scooters.

Zara, Bennetton in clothing
Zara and Benetton, have achieved their success through various business
strategies and how they influenced each other. In particular, the work will
focus on gradual change and development of the relationship between
suppliers and retailers in order to increase enterprise efficiency and customer
satisfaction.

Exploring Innovation Space.
 The tables above suggest no shortage of ways to gain
advantage through innovation; the opposite may be true.
 Which one(s) do you choose and why?
 Bessant & Tidd (2007) suggest strategy as “… a process of

exploring the space defined by our four innovation types.

Exploring Innovation Space.
Paradigm
Rad or Incr?
Rad or Incr? Rad or Incr?
Prod/serv
Process Innovation
Rad or Incr?
Position

New Product Success:
 According to Daft (Stupid) a pattern is emergent;
 Tailor innovations to customer requirements
 Effective utilisation of technology
 Influential ideas champion supports the project.

Dual Core Approach
 Administrative Core.
 Direction of change is top down.
 Examples of change; Downsizing,
Re-structuring, policy alterations.
 Best Organisation Design; Mechanistic.
 Technical Core.
 Direction of change; bottom up.
 Examples of change; Production techniques, work flows,
product ideas.
 Best organisation design; Organic.
Source: Daft, 2001.

The administrative core
 is above the technical core in the hierarchy and its
responsibilities include; the structure, control and co-
ordination of the organisation.
 It is concerned with the environmental sectors of

government, finance, economic conditions and human
resource issues.

The technical core
 is concerned with transforming raw materials into
organisational services and products and involves the
environmental sectors of customers and competition

Human Resources.
 These may involve changes in:
 employee attitude,
 behaviours and beliefs,
 skills,
 expectations and
 styles.

Environment, Structure & Innovation.
 Burns and Stalker (1961) discovered the external

environment was related to the internal
management structure of organisations.
 When the external environment was stable, the

internal organisation was characterised by the
majority of structural variables remaining high,
offering a mechanistic organisation. Mechanistic
structures facilitate the efficient production of
standardised goods and services.

Mechanistic structures
 May be more appropriate for organisations that
have frequent changes of policies, goals, strategies,
control systems, and personnel, e.g. administrative
changes are more crucial to government
organisations than technical changes.
 A top-down mechanistic structure is also

considered more appropriate for times of crisis and
emergency when power can be re-centralised at
the top of the organisation structure.

Environment, Structure & Innovation.
 When the external environment was found to be

unstable, dynamic and fast changing, successful
organisations tended to much lower levels of each
structural variable, or organic organisational forms.

Organic Organisations
 Organic organisations are more typically associated
with change and considered to be better at adapting to
a shifting set of environmental conditions.
 The flexibility of the organic organisation is attributed

to its ability to create and introduce new ideas. They
encourage a “bottom – up” approach to innovation.

Organic Organisations
Change at IBM
 An interview with Louis V. GerstnerJr., the former
chairman and CEO of IBM, about his new book "Who
Says Elephants Can't Dance?", which tells the story of
his company's revival, etc.
 Video - IBM Smarter Planet
 Video - An interview with Louis V. GerstnerJr IBM

Structural Variables:
 FORMALISATION: The Amount of written

documentation in circulation. Regulations,
Procedures, Policy Manuals, Job Descriptions,
etc.
 SPECIALISATION: If extensive, each employee

performs only a narrow range of tasks.

Structural Variables:
 STANDARDISATION: The extent to which work
activities are performed in a similar manner.
High standardisation at McDonalds, for
example.
 HIERARCHY OF AUTHORITY: Depicted by the

number of vertical layers on an organisation
chart.
 Related to SPAN OF CONTROL: How many staff

report to one supervisor.
Structural Variables.
 COMPLEXITY: (VERTICAL, HORIZONTAL,
SPATIAL). Vertical Complexity refers to the number
of vertical layers in the hierarchy. Horizontal
Complexity refers to the number of job titles or
departments existing. Horizontally across the
organisation. Spatial Complexity refers to the
geographical dispersion/location of the
organisation.
 CENTRALISATION: Refers to the locus of decision

making.
Structural Variables.
 PROFESSIONALISM: The level of formal
education and training among employees. Can
be the average number of years of education of
employees.
 PERSONNEL RATIOS: E.g. administrative

ratio, professional ratio, indirect: direct labour,
etc.

Contradiction:
 Organic conditions are not ideal for implementing
and utilising new ideas for stable production.
 More recent thinking has tended to regard the

initiation and utilisation of change as two distinct
processes, i.e. “The Ambidextrous Approach”, where
the organisation can behave in an organic way when
a new idea is called for and a mechanistic way to
implement and use the new idea.

Techniques for ambidextrous approach.
1.Switching Structures: an organisation shifts to an
organic structure when such a structure is
needed for the initiation of a new idea viz; 3M
where 15% of technical staff’s time is “free”.
2.Innovation departments: Systems Analysis, R&D,

O&M, etc.
3.Venture Teams: Given separate locations and

facilities so that they are distracted or
interrupted by current organisational
procedures, e.g. Dow Jones Chemicals, idea
champions, etc.
Environmental Dynamics
 Ansoff and McDonnell (1990) also describe
environmental dynamics and suggest 5 stages of
declining certainty.
 1. Predictable.
 2.Forecastable by extrapolation.
 3.Predictable threats and opportunities.
 4. Partially predictable opportunities.
 5. Unpredictable surprises.

1. Predictable.
 Repetitive environment.
 Market stability.
 Challenges repeat themselves.
 Organisation can change faster than market
requirements.
 Future is expected to be same as the past

2. Forecastable by Extrapolation
 Complexity increases but managers can

gauge responses to changes from
experience.
 Forecasts made confidently.

3. Predictable threats/opportunities
 Complexity increases further.
 Organisational ability to respond

becoming problematic.
 Future forecasts still have some

credibility.
4. Partially predictable opportunities.
 Uncertainty increases.
 Socio political change and
 Globalisation contribute to this.
 Future becoming only partly
predictable.

5. Unpredictable surprises.
 Environment changes exceed organisational ability to
respond.
 “Turbulent” conditions prevail in environment.
 Organisation has to “hang on” and “weather the

storm”.
 These levels of change can be compared to Stacey’s

(1996) types of change.

Stacey’s Change Scenarios.
Ralph Stacey, a British researcher into complexity and organizations, in his book
The Chaos Frontier
 1. Closed change.
 2. Contained Change.
 3. Open-ended change.

The Stacey matrix.
Before we discuss the change will discuss on Matrix

The Stacey matrix.

The Stacey matrix.
1. Technical rational decision making
Much of the management literature and theory
addresses the region on the matrix which is close to
certainty and close to agreement. In this region, we use
techniques which gather data from the past and use that
to predict the future. We plan specific paths of action to
achieve outcomes and monitor the actual behavior by
comparing it against these plans. This is sound
management practice for issues and decisions that fall in
this area. The goal is to repeat what works to improve
efficiency and effectiveness.

The Stacey matrix.
2. Political decision making
Some issues have a great deal of certainty about how

outcomes are created but high levels of disagreement
about which outcomes are desirable. Neither plans nor
shared mission are likely to work in this context. Instead,
politics become more important. Coalition building,
negotiation, and compromise are used to create the
organization's agenda and direction.

The Stacey matrix.
3. Judgemental decision making
Some issues have a high level of agreement but not
much certainty as to the cause and effect linkages to
create the desired outcomes. In these cases, monitoring
against a preset plan will not work. A strong sense of
shared mission or vision may substitute for a plan in
these cases. Comparisons are made not against plans but
against the mission and vision for the organization. In
this region, the goal is to head towards an agreed upon
future state even though the specific paths cannot be
predetermined.

The Stacey matrix.
4. Chaos
Situations where there are very high levels of uncertainty
and disagreement, often result in a breakdown or
anarchy. The traditional methods of planning, visioning,
and negotiation are insufficient in these contexts. One
personal strategy to deal with such contexts is avoidance
-avoiding the issues that are highly uncertain and where
there is little disagreement. While this may be a
protective strategy in the short run, it is disastrous in the
long run. This is a region that organizations should
avoid as much as possible.

The Stacey matrix.
5. Complexity zone
There is a large area on this diagram which lies between the anarchy region and
regions of the traditional management approaches. Stacey calls this large center
region the zone of complexity - others call it the edge of chaos. In the zone of
complexity the traditional management approaches are not very effective but it is
the zone of high creativity, innovation, and breaking with the past to create new
modes of operating. In management we spend much of our time teaching how to
manage in areas (1), (2) and (3). In these regions, we can present models which
extrapolate from past experience and thereby can be used to forecast the future.
This is the hallmark of good science in the traditional mode. When we teach
approaches, techniques and even merely a perspective in area (4) the models seem
'soft' and the lack of prediction seems problematic. We need to reinforce that
managers and leaders of organizations need to have a diversity of approaches to
deal with the diversity of contexts. Stacey's matrix honours what we already have
learned but also urges us to move with more confidence into some of the areas
which we understand intuitively but are hesitant to apply because they do not
appear as 'solid.'
Stacey’s Change Scenarios.
Ralph Stacey, a British researcher into complexity and organizations, in his book
The Chaos Frontier
 1. Closed change.
 2. Contained Change.
 3. Open-ended change.

Stacey’s Closed Change.
 Organisational history has sequence of agreed
events/stages.
 Causes/consequences of change can be stated.
 Can confidently state how this sequence will continue

to affect the organisation’s future.
 Normally applies to future of an existing organisation.

Stacey’s Closed Change.
 Unambiguous problems and clear connections
between cause and effect are the distinguishing
characteristics of closed change. People are able to
accurately forecast the effects that closed changes have
on a system. It is possible to control such changes in a
formal and analytical way. Examples of closed
change might be: changing the customer's logo in an
application, and shopping for a loaf of bread. With
closed change a task has a known purpose, including
any alternative ways of achieving that purpose, with a
corresponding effort that can be correctly estimated or
calculated.
Stacey’s Contained Change.
 Can identify only probable events and their
causes/consequences.
 Impact on future operations is also only a

“probable” statement.
 Forecasts become difficult except in the short

term- where they can be assisted by market
research, statistical projections, lifestyle
studies.

Stacey’s Contained Change.
 Management of contained change takes the form of
probabilistic forecasts. In this case the effect of one
particular change cannot be determined accurately, but
similar historical tasks and events in the past provide
valuable empirical data on the probability distribution.
Examples of contained change could be: changing the
style and theme in an application (more complex than
just a logo, but still something we have experience with),
painting an entire house (if you've done such things
before). With contained change the purpose of the task
is still known, though the estimate of effort is somewhat
unclear due to many possible changes. However, the
variability of those changes is restricted to a range we
understand well.
Stacey’s Open Ended Change.
 Past actions/events continue to impact
the organisation.
 But causal explanations are not

widespread.

 For open-ended situations control is impossible. The
changes themselves and their consequences are unknown
to us, so we cannot compare probabilities to similar
historical tasks and events. There can be many reasons.
We're unfamiliar with the problem. The purpose of the task
may be vague. The people involved may not be not fully
committed. Or the information available is insufficient or
subjective. In short, the situation is unique and/or
unclear, and it defies both analytical and empirical
forecasts. Examples of open-ended change might be:
migrating an existing web design to a new and unproven
technological platform, painting the entire neighborhood
(if you've never done such a thing before), and building a
bridge from Denmark to Sweden.
 When I cooked a dish of which the recipe says it takes only
17 minutes to make. The first time I made it I was surprised
that the dish took me exactly one hour to make. First time
my cooking efforts were faced with open-ended change.

Varieties of Change.
 Three main types of change suggested by
Grundy (1993)
 1. Smooth Incremental Change

 2. “Bumpy” Incremental Change.
 3. Discontinuous Change

Grundy’s Major Types of Change.
Discontinuous
Rate of Change
Bumpy/Incremental
Smooth
Incremental
Time

Smooth Incremental
 Experienced by organisations operating at levels 1 and
2 of Ansoff and McDonnell’s levels of declining
certainty.
 Change that evolves slowly and systematically.
 Rare in the 21st Century!
 NB Vertical axis represents rate of change not amount

of change.
Bumpy Incremental Change.
 Periods of relative calm broken by

acceleration in pace of change.
 E.g. periodic re-organisation.
 Can be viewed as associated with the means

by which organisations reach their goals
rather than the goals themselves.
Discontinuous Change
 Marked by rapid shifts in strategy, structure or
culture
 Or all three.
 Can be caused by technology (e.g. Internet).
 More like the higher levels of Ansoff and

MacDonnell’s environmental dynamics.
Tushman et al’s (1988) Convergence & Upheaval
 Tushman, Newman and Romanelli talk of
Convergence and Upheaval.
 Their research points to periods of incremental

change or convergence punctuated by
discontinuous change.
 They suggest converging change falls into two

categories; fine-tuning and incremental
adaptation.

Fine Tuning and Incremental Adaptation.
 Both have the common aim of maintaining the fit
between strategy, structure and process.
 Fine Tuning refers to doing better what is already

done well.
 Incremental adaptation involves small changes in

response to small environmental shifts.

Discontinuous change.
 May be necessary at points in the organisation’s
life cycle (OLC – covered later) when
incremental change will not produce the
desired results.
 Largely because as organisations grow their

ability to change becomes constrained by the
key contextual variable of their size.
Consequently discontinuous or frame-breaking
change may be required.
Causes of Frame-Breaking Change
 Tushman et al (1988) suggest this results from a
combination of the following:
 Industry discontinuities.- Sharp changes in the P.E.S.T.

context including; government de/regulation,
substitute technologies, emergence of industry
standards, major economic changes, war, epidemic,
famine, acts of terror, etc.

Causes of Frame-Breaking Change
 Product life cycle shifts.
 Those that follow an emergent product to

established market position.
 Internal Co dynamics; new management,

new style of management,

Frame-Breaking Change
 Usually implemented rapidly and can involve:
 Reformation of Co mission.
 Altered Power Status to reflect shifts in resource

allocation.
 Re-organisation to accommodate new

strategy/structure/systems/processes.
Revised communication/procedures.
New executives????
Reasons for frame-breaking change
 Synergy- requirement for all of the organisation to pull
in same direction.
 Pockets of resistance – develop more easily when

frame-breaking change is implemented slowly.
 Pent-up need for change – when constraints are

relaxed.
 Risk/uncertainty. –become greater the longer the

implementation period.
Defining the Scale of Change:
 Dunphy and Stace (1993) offer four
scales:
 1. Fine Tuning.
 2. Incremental Adjustment.
 3. Modular Transformation.
 4. Corporate Transformation.
Fine Tuning.
 Ongoing process to fine tune “fit” between strategy,
structure, people, processes.
 Refine policies/procedures.
 Create specialists to monitor quality/cost/CRM etc.
 Personnel Development- better training, rewards,

etc.
 Fostering commitment to the organisation.

Incremental adjustment.
 Less than radical but nonetheless distinct
modifications. Includes:
 Shifting product mix.
 Improved process/production technology.
 Expanding/retracting sales territory.
 Adjustments to organisational structures.

Modular Transformation.
 Major restructure of part of organisation.
 Changes in management in affected area.
 Work/productivity studies increase/decrease

workforce numbers significantly.
 Reformed departmental/divisional goal(s)
 Significant technological change for affected area(s).

Corporate Transformation.
 Radical shifts in strategy.
 Altered power and status.
 Major re-organisation of structures, systems,

procedures across the entire firm.
 Revised interaction patterns.
 New executives in key areas.

Activity.
 Think about 3 organisations you know.
 Evaluate their environmental dynamics using Ansoff

and MacDonnell’s framework.
 Can you match these to Stacey’s 3 levels of change

situations?
 For each of the 3 organisations, what are the

drawbacks and benefits of both incremental and
frame-breaking change?

Further Reading
 Day, G.S. and Shoemaker, J.H. (2005) Scanning the
Periphery, HBR Nov 2005 135-148
 This article offers a diagnostic to test boundary spanning
abilities.
 Stacey, R.D. (2000) Strategic Management & organisational
Dynamics, FT Prentice Hall, Harlow.
See Chapter 1 The Nature of Strategy & Organisational
Change.
 Johnson, G. and Scholes, K. (2002) Exploring Corporate
Strategy; Text and Cases, FT Prentice Hall.
See Chapter 1.Introducing Strategy, especially 1.4 Strategic
Management in Different Contexts.

Bibliography
 Ansoff, I.H. and McDonnell, E.J. (1990) Implementing
Strategic Management, Engelwood Cliffs, NJ, Prentice-Hall.
 Bessant, J. and Tidd, J. (2007) Innovation &
Entrepreneurship, Chichester, John Wiley
 Burns, T. and Stalker, G.M. (1961) The Management of
Innovation, London: Tavistock.
 Dunphy, D. and Stace, D. (1993) The Strategic Management
of Corporate Change, Human relations, Vol 46 (8) pp.905-
20.
 Daft, R.L. (2001) Organization Theory & Design, ITP: South
Western College. 7th Ed.

Bibliography
 Grundy, T. (1993) Implementing Strategic Change.
London: Kogan Page.
 Stacey, R. (1996) Strategic Management &
Organizational Dynamics, London: Pitman.
 Tushman, M.L., Newman, W.H. and Romanelli, E,
(1988) Convergence and Upheaval, managing the
unsteady pace of organizational evolution, in
Tushman, M.L. and Moore, W.L. (eds) Readings in
the Management of Innovation, New York:
Ballinger

Further Reading
 Day, G.S. and Shoemaker, J.H. (2005) Scanning the
Periphery, HBR Nov 2005 135-148
 This article offers a diagnostic to test boundary
spanning abilities.

Questions ?

Lecture 1 - Types of Change

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Lecture 1 - Types of Change

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Sanjeeva Perera – Visiting Lecturer

Lecture 1 - Types of Change MBA7024 - Change Management 1

(Source : Ron Ashkenas, HBR)

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(Source : Ron Ashkenas, HBR)

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 To identify the significance of internal and

 To differentiate between incremental and radical

 To provide a framework for “types of change”.

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Source: Daft; 1998:13

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 Organisational innovation is the adoption of a new

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 …they perceive an opportunity to exceed

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 A management consultant, on holiday in a African

 "Not very long." answered the fisherman.

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 The fisherman explained that his small catch was

 The consultant asked, "But what do you do with the

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 "After that? That's when it gets really interesting,"

 "Millions? Really? And after that?" pressed the

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Process Changes in the ways products/services

Paradigm Changes in the underlying mental models which frame

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 Occurs when organisation members actually use the

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Continuous Progression Discontinuous Progression

Equilibrium Attain New Equilibrium.

Focused change on part of Transformation encompassing all

Utilize existing structure and Generate new structure and

New(ish) Technology Breakthrough technology.

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 Building capability to innovate is only part of the

 If innovation is not aligned to the strategy of the

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Timing First Mover advantage Amazon.com

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Robust/ Offer something which Boeing 737 (30+

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 Which one(s) do you choose and why?

 Bessant & Tidd (2007) suggest strategy as “… a process of

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 Tailor innovations to customer requirements

 Effective utilisation of technology

 Influential ideas champion supports the project.

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 It is concerned with the environmental sectors of

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