Large-Scale Organizational Change: Look Before You Leap!
I am often asked, "Should organizational change be done quickly
or slowly over time?" and "Should management attempt large
radical changes or small incremental changes?" The safe answer
is, "It depends."
The literature on organizational change identifies two general
types of changes: first-order change and second-order change.
First-order change gets less attention because it is less
dramatic. It is incremental and evolutionary in nature. We see
first-order change today in organizations in the form of quality
improvement programs (e.g., TQM or Six Sigma). First-order
incremental change is also important after large-scale,
organization-wide, second-order change.
Second-order change is discussed more often in management
literature because it is dramatic, radical, and revolutionary.
The very survival of the organization may depend on these
changes. Examples of second-order change include interventions
to create and implement a new corporate mission (or strategy) or
to completely restructure the organization's hierarchy.
Second-order changes occur rather infrequently, but they get the
attention of many interested parties (customers, employees,
suppliers, competitors, consultants, management authors,
academics, investment analysts, the media, and communities of
various kinds).
There is clearly a bias in the management literature toward big
changes at high speed. John Kotter, the author of Leading
Change, has stated, "To change an organization successfully, you
have to make big moves. No matter who you are, there is a
tendency to want to take the ball forward only a couple of
yards. But that doesn't work. You can't coax people into change."
Jack Welch, the former CEO of GE, said, "Incremental nudges in a
world that's moving in nanoseconds is absolutely not acceptable.
Strike boldly when you believe in something. Take action and
live with the consequences. If it's right, soar with it; if it's
wrong, cut your losses and do something else."
While these comments, from two management-thought leaders, are
inspiring, I would recommend that you look before you leap into
these large-scale, second-order changes. Keep in mind that two
out of three organizational transformation initiatives fail.
Many organizations already have a poor track record with
organizational change efforts. A poor track record will dampen
organizational members' hopes for success with current
large-scale changes.
Also, remember that organizational change is a complex topic. A
search on Amazon.com for books on management and change produces
a list of over 6,000 titles. Each author has a distinct take on
the subject.
I am not against large-scale changes, but they require an
ongoing, visible commitment from senior management.
Organizational leaders must devote considerable amounts of time
to leading the initiative and encouraging "the troops." Most
senior leaders seriously underestimate the time required of them.
Before deciding on a large-scale organizational change, maybe
you should look before you leap!