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Cracking the Code of Change

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Submitted By JessMoon
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Change Management

Summary-Harvard Business Review -Cracking the Code of Change -

Submitted by:
Moon Ji Yeon (1315101)
Entrepreneurship, School of Global Service

Submitted to:
Professor Tae Woo Roh November 13, 2014

The article titled “Cracking the Code of Change” was written by Michael Beer and Nitin Nohria, Professors in Harvard Business School. The authors highly argued that it is important to understand the two basic theories of change to implement successful change. To support their ideas, the importance of combining two theories will be covered. The article also, described the contradictions that can be aroused when it comes to managing Theory E and Theory O simultaneously. Not only did this article point out the contradictions, but it also suggested how the company deal with them by showing some examples. Based on the content of article, the review will introduce about the conception of Theory E & Theory O and compare those two theories based on the six dimensions. In addition, contradictions and my review will be attached below. According to the article, there exist two archetypal theories of change. Those two theories are based on very opposite characteristics. They are directly related to ‘why and how changes should be made’. The first theory is called ‘Theory E’. This is considered a “hard” approach to change because it often becomes important news in the organization. This aims to create economic values; therefore it mainly focuses on shareholder value. Theory E change strategies involve ‘drastic layoffs, downsizing, restructuring and economic incentives’. Opposing to Theory E, Theory O is based on organizational capability. It involves the strategies like developing corporate culture and human capability through individual & organizational learning. Therefore, it deals with all the

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