Organizing :: Changing :: Communicating » economy

Mergers are organizational change

itowers — Sun, 21 Feb 2010 06:30:15 +0000

One of the most fundamental reasons for starting change initiatives in an organization is a merger.

Amazing but true: 50% of mergers fail – just ask Daimler about their adventures with Chrysler if you want to get confirmation.

In a merger, one set of staff has to change the way they work to match that of the other organization. It’s not enough to simply send out a few Powerpoint slides – people want an answer to the questions ‘What does this mean for me?’

And this needs to take place not only in the ‘losing’ firm, because the kind of change that a merger involves also affects staff in the ‘winning’ firm.

So this means that the management of the relevant change processes has
to take account of the fact that when a merger takes place, there are
always (perceived and actual) winners and losers. It means that the
change has to be managed and the level of the individual and the group,
as well as at the the level of the whole organization.

The Contexts of Organizational Change

itowers — Wed, 09 Dec 2009 12:41:31 +0000

Organizations do not exist in a vacuum. The model of organizational change that I developed specifically takes account of what I call the external context. This includes – but is not limited to – developments that directly affect the financial aspects of business.

As the outer context changes, my model suggests that this then has an affect on any change processes that are taking place in an organization. The Euro is now losingvalue against the dollar.

Let’s assume that your organization is going through some change initiatives that require money (and they all do). How are you going to manage that? Will you change the scope of the change? Carry on anyway? One thing is certain – the change you began with will not be the same change that you end with.

Beer, Berlin and Organizational Change Management

itowers — Fri, 16 Oct 2009 22:05:27 +0000

I came across this interesting article from last year by Stefan Stern on the Financial Times web site – Bosses with a thirst for change. I live in Berlin, so his discussion of how the managers of brewing firms in the former East Germany adapted to the fall of the Berlin wall was interesting for two reasons.

Reason 1 – I like the beer
Reason 2 – the managers showed a great deal of skill in adapting to the changing business environment (what we at Turris Consulting call the external change context).