Chapter 4
Types of Change
First order: incremental change, maintain and develop the organization, they are changes designed to support organizational comunity and order.
Fine-tuning, incremental
Adaptive, incremental but recreative: * Individual initiatives: small-scale changes, personal initiatives, identifying and emplementing small-scale changes. Individual ability to create or exploit a tech. 1. Autocratic 2. Meritocratic 3. Social club

Second order: discontinuos change “is transformational. Alters org core, not developing but transforming: * Downsizing, restructuring and reengineering are regarded as transformational. Ocurring recommendations for major change with hypercompetitive bussines eviroments: 1. Delayering; vertical levels 2. Networks/alliance; internal and external collaboration 3. Outsourcing; no distinctive competence 4. Dissaggregation, smaller bussines units 5. Empowerment; to provide employees with authority, resources and encouragement to take actions 6. Flexible work groups 7. Short-term staffing; short period, specific issues/tasks 8. Reduction of internal and external boundaries; to encourage communication and resource sharing

Reorientation,
Re-creation.
Transformational Types: * Type 1, org moves from an entrepreneurial to a professional management structure; Apple Computers from an entrepreneurial company, larger professional. * Type 2, revitalization of already-established companies, same market but focuses on how to rebu itselfs in order to operate effectively. Compaq computers * Type 3, visionary change, fundamentally changes the bussines in wich it is involved, Starbucks local roater and importer of coffe beans to string of national company-owned coffe retail stores.
Beyond Either First-Order to Second-Order Change
Approaches do not retain firm distinctions between categorizing changes, adaptive or transformational * Midrange Org Change: Tectonic change, dynamic enviroments, seek to modify without destroying employee loyalty other positive company attributes. 1. High inertia, change is perceived as unnecessary, little gap between current identity and implied in the change. 2. High stress, change is perceived as unattainable and the gap is too wide between the current org identity and the one that will occur as a result of the change. * Change as Punctuated Equilibrium: more attention needs to be paid to the interplay between incremental and transformational change. Revolutionary periods substantially disrupt established activity patterns and install the vasis for new equilibrium periods * Change as Robust Transformation: Limitations of assuming that they should adapt, bring into equilibrium with a new set of environmental conditions. Environmental be temporary, or undergoing continuous change, require robust responses including capabilities. Identify what is intended to reinforce established practices, achieve an adaptive fit or develop capabilities.
Types of Changes: Lessons from the front line (Restructuring) * Downsizing: cost cutting, employing it as a last resort. Downsizing will no necessarily lead to gains in productivity. Costly change process, social and psychological effects on employees. Change Challenges of Downsizing: 1. Employee retention 2. Avoiding “hard landings” 3. Minimizing political behavior and loss of teamwork 4. Survivor syndrome 5. Communication 6. Cultural adjustment * Technological Change: Focus of change management activities, implementing new technologies is not straightforward, fail to achieve their intended purpose. Managers often seek to use technologies for short-term solutions without paying attention to longer-term advantages that IT might offer an org. Change Challenges: 1. Goal synthesis 2. Choice of tech 3. Identifying political barriers 4. The IT team 5. Communication 6. Time frame 7. Contingency planning * Mergers and Acquisitions: Growth, accelerated rates. Change Challenge: 1. Cost savings 2. Cultural adjustment 3. Balancing change and continuity 4. Due diligence 5. Employee retention 6. Contingency planning 7. Power structure 8. Communication
How Fast?
The view that radical change has to occur quickly in order to creat necessary momentum to overcome inertia has come under scrutiny. “If they are not carefully planned and introduced, changes to high-impact elemnts may subsequently need to be withdrawn and possibly modified, inevitably slowling the change process and likely decreasing its probability of success.