Strategic Change Management & Innovation – BMO-32306
Lecture 1 Introduction & Process of Change
Change management: process of changing for the entire company
Innovation: application of new technology and new ideas in the organization and in the
market to achieve competitive advantage
Can companies manage the change process? Life cycle view -> no -> organizations evolve on
a necessary sequence of steps + evolutionary view -> no -> organizations survive or die
based on fit with their external environment + teleological view -> yes -> organizations learn
over time from external environment + dialectical view -> yes -> organizations confront their
conflicting goals and find a direction to change
Lewin’s three step process: unfreeze -> move -> refreeze
Key steps of a change: 1. Recognizing 2. Diagnosing 3. Planning 4. Implementing 5.
Sustaining 6. Leading, managing people issues (at all steps) 7. Learning
People issues: power, leadership, and stakeholder management + communication +
motivating to change + personal transition
Gradualist paradigm: organizations adapt to opportunities and threats by engaging in a
process of continuous incremental change (step by step)
Punctuated equilibrium: organizations evolve through the alternation of periods equilibrium
and periods of revolutions in which deep structures are changed fundamentally
Incremental change: step by step (in periods)
Transformational: evolutionary (in periods when the organization is misaligned with its
environment
Tuning: incremental & proactive
Reorientation: transformational & proactive
Adaption: incremental & reactive
Re-creation: transformational & reactive
Lecture 2 Recognizing the Need or Opportunity for Change
Trap of success: first, only few people realize that change is needed. Due to past successes,
the organization stops learning from the external environment.
As the company grows, it becomes more complex, and crisis of growth are in the DNA of
organizations
Greiner’s stages of organizational growth: crisis of leadership -> when the business grows,
one or few leaders are not suited to structure an increasingly complex process + crisis of
autonomy -> when the business grows, managers want to be more independent. Their
creativity may be frustrated with too many rules & structures + crisis of control ->
competition among departments makes the entire organization to lose common focus and
vision + crisis of red rape -> the organization becomes cynical (profit and formal rules are
too important) and too many formal steps are needed to put new ideas into proactive and
innovate
Holacracy (no hierarchy at all) vs hierarchy level
Performance indicators: groups within the same organization have different perspectives +
different goals regarding performance -> balanced scorecard
External sources of change -> PEST analysis: Political factors + Economic factors +
Sociocultural factors + Technological factors
Lecture 1 Introduction & Process of Change
Change management: process of changing for the entire company
Innovation: application of new technology and new ideas in the organization and in the
market to achieve competitive advantage
Can companies manage the change process? Life cycle view -> no -> organizations evolve on
a necessary sequence of steps + evolutionary view -> no -> organizations survive or die
based on fit with their external environment + teleological view -> yes -> organizations learn
over time from external environment + dialectical view -> yes -> organizations confront their
conflicting goals and find a direction to change
Lewin’s three step process: unfreeze -> move -> refreeze
Key steps of a change: 1. Recognizing 2. Diagnosing 3. Planning 4. Implementing 5.
Sustaining 6. Leading, managing people issues (at all steps) 7. Learning
People issues: power, leadership, and stakeholder management + communication +
motivating to change + personal transition
Gradualist paradigm: organizations adapt to opportunities and threats by engaging in a
process of continuous incremental change (step by step)
Punctuated equilibrium: organizations evolve through the alternation of periods equilibrium
and periods of revolutions in which deep structures are changed fundamentally
Incremental change: step by step (in periods)
Transformational: evolutionary (in periods when the organization is misaligned with its
environment
Tuning: incremental & proactive
Reorientation: transformational & proactive
Adaption: incremental & reactive
Re-creation: transformational & reactive
Lecture 2 Recognizing the Need or Opportunity for Change
Trap of success: first, only few people realize that change is needed. Due to past successes,
the organization stops learning from the external environment.
As the company grows, it becomes more complex, and crisis of growth are in the DNA of
organizations
Greiner’s stages of organizational growth: crisis of leadership -> when the business grows,
one or few leaders are not suited to structure an increasingly complex process + crisis of
autonomy -> when the business grows, managers want to be more independent. Their
creativity may be frustrated with too many rules & structures + crisis of control ->
competition among departments makes the entire organization to lose common focus and
vision + crisis of red rape -> the organization becomes cynical (profit and formal rules are
too important) and too many formal steps are needed to put new ideas into proactive and
innovate
Holacracy (no hierarchy at all) vs hierarchy level
Performance indicators: groups within the same organization have different perspectives +
different goals regarding performance -> balanced scorecard
External sources of change -> PEST analysis: Political factors + Economic factors +
Sociocultural factors + Technological factors
