MGT521 Travelink Solutions Case Study.docx

(Mt) – MGT521 CT8: Travelink Solutions Case Study
SEU MGT521: Managing Dynamic Environments Credit Hours: Contact Hours: 3 This is a 3-
credit course, offered in a 10-module format. The number of hours per week that you can
expect to spend on each course will vary based upon the weekly coursework, as well as your
study style and preferences. You should plan to spend 10-14 hours per week in each course
reading materials, participating in discussion questions, completing critical thinking
assignments, quizzes, and conducting research. Faculty Information Faculty contact
information and office hours can be found on the faculty profile page. Course Description
and Outcomes Course Description: This course examines planned organizational change
and the role of change agents in the development and execution of change plans to achieve
meaningful, useful organizational change. It evaluates how employee productivity and
morale can be affected when an organization makes significant changes that impact the
organizational culture. The major components of the change process are applied from both
the employer perspective and the employee perspective. Additional topics explored are the
important role of leadership in the change management process along with the
development of team spirit and communication in pursuit of task and organizational clarity.
Learners will develop the necessary skills to navigate organizational change and will also
learn how to become adept at accepting change. They will develop and enhance their skills
as change agents while discovering how they can become stronger leaders by recognizing
their role in the change management process. Finally, they will examine ways in which they
can advance their careers by becoming change agents. Course Learning Outcomes: 1.
Describe the multiple paths that are used to implement change in an organization. 2.
Recognize that companies cannot always control the need for change, but they can
proactively manage the change process. 3. Evaluate the various employee behavioral
changes that take place in response to change. 4. Illustrate how dynamic competitive
environments prompt organizational leaders to alter their change strategies. 5. Analyze
organizational cultures and their role in hindering and implementing change. 6. Evaluate
how to move an organization through the change process by creating dissatisfaction with
the status quo. Participation & Attendance Prompt and consistent attendance in your online
courses is essential for your success. If for some reason you would like to withdraw from
the course, please contact your college at Saudi Electronic University. Online classes have
deadlines, assignments, and participation requirements just like on-campus classes. Budget
your time carefully and keep an open line of communication with your instructor. If you are
having problems with your assignments, or other problems that are impeding your

progress, let your instructor know as soon as possible. If you have technical issues, contact
SEU Technical Support. Course Materials Required: Deszca, G., Ingols, C., & Cawsey, T. F.
(2020). Organizational change: An action-oriented toolkit. SAGE Publications. ● Print ISBN-
13: 9781544351407 ● e-book Amazon ASIN: B07X2SSSFF Course Schedule Due Dates The
Academic Week begins on Sunday and ends the following Saturday. Critical thinking
assignments: Each critical thinking assignment will require students to apply their
knowledge learned in the module to real-world scenarios. Critical thinking assignments are
due by Saturday at midnight of the week assigned. The following additional information is
provided specific to late submission of critical thinking assignments: ● ● ● ● Critical
thinking assignments may be submitted through Day 7 after the initial due date (grace
period) without penalty. Critical thinking assignments submitted after Day 7 (Day 8)
through Day 14 after the initial due date, will be subject to a 10%-point penalty. Critical
thinking assignments submitted Day 15 or later after the initial due date will be assigned a
grade of zero. As a matter of policy, SEU students may not resubmit critical thinking
assignments to better their initial grade. Discussion Activities: Application of knowledge is
an important step in the learning experience and every course has key discussions wherein
students can apply and analyze content as well as move toward synthesis. This course has
Discussion Forums that provide learners an extended opportunity to interact with one
another in an instructor-facilitated dialogue that focuses on key course themes. Students
will apply and synthesize knowledge to real-world decision-making. Important: ● The
primary posting must be submitted by Wednesday at 11:59 p.m. and peer and instructor
responses must be posted by Saturday at 11:59 p.m. ● No late postings, primary or
additional, will be accepted or graded. ● No critical thinking assignments, discussion board
assignments, labs, or quizzes can be submitted for credit after the final day of the course,
Saturday, Module 12. ● No rework of assignments for improved credit is permitted.
Quizzes: These graded exercises will assess students’ knowledge in specific topic areas and
help prepare them for their midterm and final examinations. Quizzes are available to take
throughout the session, but students are strongly recommended to take the quizzes when
scheduled on the syllabus. Quizzes must be taken in Blackboard for credit. Live Sessions:
Attending all required live sessions helps students prepare for the midterm and final
examinations and gain a better understanding of the course materials. Module # 01 02
Readings Welcome and Intro Discussion ● ● ● 03 ● ● ● ● Assignments n/a Chapter 1 in
Organizational Change: An Action-Oriented Discussion (12) Toolkit Am, F. J. (2020, June 17).
Innovation in a crisis: Why it is more critical than ever. Retrieved from McKinsey &
Company: https://www.mckinsey.com/business-functions/strategy -and-corporate-
finance/our-insights/innovation-in-a-cris is-why-it-is-more-critical-than-ever Jaber, T.
(2021). A surge toward a sustainable future: Organizational change and transformational
vision by an oil and gas company. RAC – Revista de Administração Contemporânea, 25(3), 1-
23. Chapter 2 in Organizational Change: An Action-Oriented Toolkit Chapter 3 in
Organizational Change: An Action-Oriented Toolkit MASCU, S. (2021). Factors That Trigger
Changes in Modern Organizations. Review of International Comparative Management /
Revista de Management Comparat International, 22(5), 729–737. Samal, A., & Chatterjee, D.
(2020). Rethinking organizational change: Towards a conceptual Critical Thinking

Assignment (100) Quiz (10) Live Session framework. South Asian Journal of Management,
27(2), 30-53. 04 ● ● ● 05 ● ● ● 06 ● ● ● 07 08 Chapter 4 in Organizational Change: An
Action-Oriented Toolkit Oznacar, B., & Celik, M. (2021). Factors That Lead to Change in the
Mission and Vision Statements of Organizations: A Research on Five-Star Hotels Operating
in the Turkish Republic of Northern Cyprus. International Journal of Ecosystems & Ecology
Sciences, 12(1), 225–236. Venus, M., Stam, D., & Van Knippenberg, D. (2019). Visions of
change as visions of continuity. Academy of Management Journal, 62(3), 667-690.
Discussion (12) Chapter 4 in Organizational Change: An Action-Oriented Toolkit
Organizational Inertia as a Barrier to Change: The Application of Grounded Theory to
Understand Organizational Inertia. (2020). Organizational Culture Management, 19(2),
251–280. Allen, J. B., Jain, S., & Church, A. H. (2020). Using a pulse survey approach to drive
organizational change. Organization Development Review, 52(3), 62-68. Critical Thinking
Assignment (100) Quiz (10) Live Session Chapter 5 in Organizational Change: An Action-
Oriented Toolkit Colombo, C. M., & Mella, P. (2021). “Organization”. A Multi-Facet Concept.
Economia Aziendale Online 2000 Web, 12(4), 487–506. Simpson, A., & Feyerabend, M.
(2022). Tug-of-War: the Pull of Formal Institutional Practices and Structures and the Desire
for Personal Change. International Journal of Science & Mathematics Education, 20(1), 149–
168. Discussion (12) Midterm Examination ● ● ● ● Chapter 6 in Organizational Change:
An Action-Oriented Toolkit Chapter 7 in Organizational Change: An Action-Oriented Toolkit
Sava, I. (2020). Change management and organizational culture. Gaps to be bridged in
bureaucratic organizations. Journal of Defense Resources Management, 11(2), 40-59.
COVIC, D., & PLANINIC, I. (2020). Organizational Culture Key Role in a Successful Change
Management Process. DAAAM International Scientific Book, 131–142. Critical Thinking
Assignment (100) Live Session 09 ● ● 10 ● ● ● ● ● 11 ● ● ● 12 ● ● ● ● 13 Chapter 8
in Organizational Change: An Action-Oriented Toolkit Nielsen, K., Dawson, J., Hasson, H., &
Schwarz, U. von T. (2021). What about me? The impact of employee change agents’ person-
role fit on their job satisfaction during organisational change. Work & Stress, 35(1), 57–73.
Discussion (12) Quiz (10) Chapter 8 in Organizational Change: An Action-Oriented Toolkit
Chapter 9 in Organizational Change: An Action-Oriented Toolkit Ericson-Lidman, E., &
Strandberg, G. (2021). Change agents’ experiences of implementing a new organizational
culture in residential care for older people: A qualitative study. Nordic Journal of Nursing
Research, 41(3), 149–157. Havlovska, N., Illiashenko, O., Konoplina, O., Shevchuk, I.,
Hlynska, A., & Prytys, V. (2020). Strategic Adaptation as a Way of Managing Organizational
Changes in the Context of Implementing a Safety Oriented Enterprise Management
Approach. TEM Journal, 9(3), 1053–1061. Darbeau, P. (2020). Advice for the Internal
Organization Development Consultant. Organization Development Review, 52(2), 23–28.
Discussion (12) Live Session Chapter 9 in Organizational Change: An Action-Oriented
Toolkit Weerda, K. (2021, October 7). Future-proofing the organization the ‘helix’ way.
Retrieved from McKinsey & Company: Bartram, T., Stanton, P., Bamber, G. J., Leggat, S. G.,
Ballardie, R., & Gough, R. (2020). Engaging Professionals in Sustainable Workplace
Innovation: Medical Doctors and Institutional Work. British Journal of Management, 31(1),
42–55. Critical Thinking Assignment (120) Quiz (10) Chapter 10 in Organizational Change:
An Action-Oriented Toolkit Chapter 11 in Organizational Change: An Action-Oriented

Toolkit Keller, S. &. (2020, May 5). How do we manage the change journey? Sætnan, A. R.,
Tøndel, G., & Rasmussen, B. (2019). Does counting change what is counted? Potential for
paradigm change through performance metrics. Research Evaluation, 28(1), 73–83. Live
Session Final Exam Assignment Details This course includes the following
assignments/projects: Module 03: Critical Thinking Assignment: Towards a Conceptual
Framework (100 points) In this module you have examined the different types of change
management frameworks. Now read, Rethinking organizational change: Towards a
conceptual framework from the required reading list. This study proposes a conceptual
framework incorporating the macro environment (industry-level changes) with
organization-level changes to help practitioners build a more balanced approach to change
management. With this approach, consider the macro environment of the Kingdom of Saudi
Arabia. 1. Discuss the six models of managing change and which you think would work best
in the KSA business environment and why? Now consider an industry-level application
based on a company in an industry that you are familiar with in the Kingdom. 2. Provide an
overview of the company and share information about the organization’s mission, vision,
values, industry, etc. 3. How could a macro level approach to change management, as
offered by the authors, benefit this company? 4. Which of the six models would you use to
support this macro/micro level analysis? Your well-written paper should meet the
following requirements: ● ● ● ● ● Be 4-5 pages in length, which does not include the title
and reference pages, which are never a part of the content minimum requirements. Use
Saudi Electronic University academic writing standards and APA style guidelines. Support
your submission with course material concepts, principles, and theories from the textbook
and at least three scholarly, peer-reviewed journal articles. It is strongly encouraged that
you submit all assignments into the Turnitin Originality Check prior to submitting it to your
instructor for grading. If you are unsure how to submit an assignment into the Originality
Check tool, review the Turnitin Originality Check – Student Guide for step-by-step
instructions. Review the grading rubric to see how you will be graded for this assignment
Module 05: Critical Thinking Assignment: Organizational Change (100 points) Each
organization has its own background perceptions, ethics, values, history, and ambitions.
Therefore, a “one size fits all” change management process may not work in every
organization. We must assess and adapt our process to fit the backgrounds and
philosophies of each organization. Given this understanding, we need to research and assess
when, and if, an organization is ready for change, and then adopt a process to best facilitate
the change process. Choose a Middle Eastern organization at which you are currently
working or one in which you are familiar. (If neither is possible, conduct an internet search
to identify a Middle Eastern organization which has gone through a transformation process
within the last three years.) Then address the following: ● ● ● ● ● ● ● Provide a brief
summary of the organization (its history, culture, industry, product, and services). Explain
why a change was needed. What is the gap between the present state and the desired future
state? How strong is the need for change? What is the source of this need? Is it external to
the organization? If the change does not occur, what will be the impact on the organization
in the next few years? Briefly explain if the change process was a success or failure. Based
on what you have learned thus far in the course, evaluate the company’s readiness for

change. Were they ready, why or why not? Would you have done anything differently? Your
well-written paper should meet the following requirements: ● ● ● ● ● Be 4-5 pages in
length, which does not include the title and reference pages, which are never a part of the
content minimum requirements. Use Saudi Electronic University academic writing
standards and APA style guidelines. Support your submission with course material
concepts, principles, and theories from the textbook and at least three scholarly, peer-
reviewed journal articles. It is strongly encouraged that you submit all assignments into the
Turnitin Originality Check prior to submitting it to your instructor for grading. If you are
unsure how to submit an assignment into the Originality Check tool, review the Turnitin
Originality Check – Student Guide for step-by-step instructions. Review the grading rubric
to see how you will be graded for this assignment. Module 08: Critical Thinking Assignment:
Travelink Solutions Case Study (100 points) Read the case study “Travel Solutions” at the
end of Chapter 7 of your textbook, follow the following directions and then respond to the
case study questions A case study is a puzzle to be solved, so before reading and answering
the specific questions, develop your proposed solution by following these five steps: 1. Read
the case study to identify the key issues and underlying issues. These issues are the
principles and concepts of the course module, which apply to the situation described in the
case study. 2. Record the facts from the case study which are relevant to the principles and
concepts of the module. The case may have extraneous information not relevant to the
current module. Your ability to differentiate between relevant and irrelevant information is
an important aspect of case analysis, as it will inform the focus of your answers. 3. Describe
in some detail the actions that would address or correct the situation. 4. Consider how you
would support your solution with examples from experience or current real-life examples
or cases from textbooks. 5. Complete this initial analysis and then read the discussion
questions. Typically, you will already have the answers to the questions but with a broader
consideration. At this point, you can add the details and/or analytical tools required to solve
the case. Case Study Questions: 1. What is your assessment of the situation at Travelink at
the end of the case? What are the underlying problems in the organization? 2. If you found
yourself in Will or Robert’s situation, what would you do? Why? 3. If Will and Robert both
decide to stay and try to advance needed changes, what changes would you recommend
they focus on and how would you recommend they go about it? Would you, for example,
share Will’s documentation of the problems within the company? Why or why not? 4. Have
you ever been in a situation where you were a recipient of change and things went poorly?
How did it affect you and others in the organization? Your well-written paper should meet
the following requirements: ● ● ● ● ● Be 4-5 pages in length, which does not include the
title and reference pages, which are never a part of the content minimum requirements. Use
Saudi Electronic University academic writing standards and APA style guidelines. Support
your submission with course material concepts, principles, and theories from the textbook
and at least three scholarly, peer-reviewed journal articles. It is strongly encouraged that
you submit all assignments into the Turnitin Originality Check prior to submitting it to your
instructor for grading. If you are unsure how to submit an assignment into the Originality
Check tool, review the Turnitin Originality Check – Student Guide for step-by-step
instructions. Review the grading rubric to see how you will be graded for this assignment.

Module 11: Critical Thinking Assignment: Turning Around Cote Construction Company Case
Study (100 points) Read the “Turning Around Cote Construction Company” found at the end
of Chapter 9 and follow these steps before answering the case study questions. In order to
answer the case study questions you will apply the Change Path Model from Chapter 9 to
the Cote Construction Company case. A case study is a puzzle to be solved, so before reading
and answering the specific questions, develop your proposed solution by following these
five steps: 1. Read the case study to identify the key issues and underlying issues. These
issues are the principles and concepts of the course module, which apply to the situation
described in the case study. 2. Record the facts from the case study which are relevant to the
principles and concepts of the module. The case may have extraneous information not
relevant to the current module. Your ability to differentiate between relevant and irrelevant
information is an important aspect of case analysis, as it will inform the focus of your
answers. 3. Describe in some detail the actions that would address or correct the situation.
4. Consider how you would support your solution with examples from experience or
current real-life examples or cases from textbooks. 5. Complete this initial analysis and then
read the discussion questions. Typically, you will already have the answers to the questions
but with a broader consideration. At this point, you can add the details and/or analytical
tools required to solve the case. Case Study Questions: 1. What problems should he tackle
first? Which were operational and which were organizational? What timeline should he
establish? 2. How should he consider the people in the company? What should he ask them?
How should he approach them to solicit their ideas for the turnaround? 3. How should he
deal with Felix? Should he allow him to continue as head of Equipment and Operations?
Should he sideline Felix and formally reduce his authority at Cote Construction? Would it, in
fact, be a relief to employees to know that Felix no longer played a role in the company?
Your well-written paper should meet the following requirements: ● ● ● ● ● Be 6-8 pages
in length, which does not include the title and reference pages, which are never a part of the
content minimum requirements. Use Saudi Electronic University academic writing
standards and APA style guidelines. Support your submission with course material
concepts, principles, and theories from the textbook and at least four scholarly, peer-
reviewed journal articles. It is strongly encouraged that you submit all assignments into the
Turnitin Originality Check prior to submitting it to your instructor for grading. If you are
unsure how to submit an assignment into the Originality Check tool, review the Turnitin
Originality Check – Student Guide for step-by-step instructions. Review the grading rubric
to see how you will be graded for this assignment. Course Policies Course Grading Critical
Thinking Assignments Discussion Quizzes 400 points 60 points 40 points No critical
thinking assignments, discussion board assignments, labs, or quizzes can be submitted for
credit after the final day of the course, Saturday, Module 12. Critical Thinking Assignment
Cover Page All critical thinking assignments need to include a cover page containing the
following information: Course Code with CRN Code: (i.e., CS507-12345) Course Name: (i.e.,
Introduction to Cyber Security and Digital Crime) Assignment Name and Module #: (i.e.,
Risk Assessment Module 11) Maximum Points on Assignment: (i.e., 110 points) Student ID
Student Name Submission Date __/__/____ Example cover page: 1 Organizational Change
Fourth Edition 2 This book is dedicated to Tupper Cawsey, our dear and wonderful friend,

colleague, and extraordinary educator. He passed away, but his positive impact continues to
reverberate in those he touched. Thank you, Tupper. Gene and Cynthia 3 4 Organizational
Change An Action-Oriented Toolkit Fourth Edition Gene Deszca Wilfrid Laurier University
Cynthia Ingols Simmons University Tupper F. Cawsey Wilfrid Laurier University Los
Angeles London New Delhi Singapore Washington DC 5 Melbourne 6 FOR INFORMATION:
SAGE Publications, Inc. 2455 Teller Road Thousand Oaks, California 91320 E-mail:
order@sagepub.com SAGE Publications India Pvt. Ltd. B 1/I 1 Mohan Cooperative Industrial
Area Mathura Road, New Delhi 110 044 India SAGE Publications Ltd. 1 Oliver’s Yard 55 City
Road London EC1Y 1SP United Kingdom SAGE Publications Asia-Pacific Pte. Ltd. 18 Cross
Street #10-10/11/12 China Square Central Singapore 048423 Copyright © 2020 by SAGE
Publications, Inc. All rights reserved. Except as permitted by U.S. copyright law, no part of
this work may be reproduced or distributed in any form or by any means, or stored in a
database or retrieval system, without permission in writing from the publisher. 7 All third
party trademarks referenced or depicted herein are included solely for the purpose of
illustration and are the property of their respective owners. Reference to these trademarks
in no way indicates any relationship with, or endorsement by, the trademark owner. Printed
in the United States of America Library of Congress Cataloging-in-Publication Data Names:
Deszca, Gene, author. | Ingols, Cynthia, author. | Cawsey, T. F., author/ Title: Organizational
change : an action-oriented toolkit / Gene Deszca, Wilfrid Laurier University, Canada,
Cynthia Ingols – Simmons College, USA, Tupper F. Cawsey – Wilfrid Laurier University,
Canada. Other titles: Organisational change Description: Fourth Edition. | Thousand Oaks :
SAGE Publications, [2019] | Revised edition of Organizational change, [2016] | Includes
bibliographical references and index. Identifiers: LCCN 2019013498 | ISBN
9781544351407 (paperback) Subjects: LCSH: Organizational change. Classification: LCC
HD58.8 .C39 2019 | DDC 658.4/06—dc23 LC record available at
https://lccn.loc.gov/2019013498 Acquisitions Editor: Maggie Stanley Editorial Assistant:
Janeane Calderon Production Editor: Gagan Mahindra Copy Editor: Lynne Curry Typesetter:
C&M Digitals (P) Ltd. Proofreader: Rae-Ann Goodwin Indexer: Mary Mortensen Cover
Designer: Candice Harman Marketing Manager: Sarah Panella 8 9 Brief Contents 1. Preface
2. Acknowledgments 3. Chapter 1 • Changing Organizations in Our Complex World 4.
Chapter 2 • How to Lead Organizational Change: Frameworks 5. Chapter 3 • What to Change
in an Organization: Frameworks 6. Chapter 4 • Building and Energizing the Need for Change
7. Chapter 5 • Navigating Change through Formal Structures and Systems 8. Chapter 6 •
Navigating Organizational Politics and Culture 9. Chapter 7 • Managing Recipients of Change
and Influencing Internal Stakeholders 10. Chapter 8 • Becoming a Master Change Agent 11.
Chapter 9 • Action Planning and Implementation 12. Chapter 10 • Get and Use Data
Throughout the Change Process 13. Chapter 11 • The Future of Organizations and the
Future of Change 14. Notes 15. Index 16. About the Authors 10 11 Detailed Contents Preface
Acknowledgments Chapter 1 • Changing Organizations in Our Complex World Defining
Organizational Change The Orientation of This Book Environmental Forces Driving Change
Today The Implications of Worldwide Trends for Change Management Four Types of
Organizational Change Planned Changes Don’t Always Produce the Intended Results
Organizational Change Roles Change Initiators Change Implementers Change Facilitators

Common Challenges for Managerial Roles Change Recipients The Requirements for
Becoming a Successful Change Leader Summary Key Terms End-of-Chapter Exercises
Chapter 2 • How to Lead Organizational Change: Frameworks Differentiating How to
Change from What to Change The Processes of Organizational Change (1) Stage Theory of
Change: Lewin Unfreeze Change Refreeze: or more appropriately Re-gell (2) Stage Model of
Organizational Change: Kotter Kotter’s Eight-Stage Process (3) Giving Voice to Values:
Gentile GVV and Organizational Change (4) Emotional Transitions Through Change: Duck
Duck’s Five-Stage Change Curve (5) Managing the Change Process: Beckhard and Harris 12
(6) The Change Path Model: Deszca and Ingols Application of the Change Path Model
Awakening: Why Change? Mobilization: Activating the Gap Analysis Acceleration: Getting
from Here to There Institutionalization: Using Data to Help Make the Change Stick Summary
Key Terms End-of-Chapter Exercises Case Study: “Not an Option to Even Consider:”
Contending With the Pressures to Compromise by Heather Bodman and Cynthia Ingols
Chapter 3 • What to Change in an Organization: Frameworks Open Systems Approach to
Organizational Analysis (1) Nadler and Tushman’s Congruence Model History and
Environment Strategy The Transformation Process Work The Formal Organization The
Informal Organization People Outputs An Example Using Nadler and Tushman’s
Congruence Model Evaluating Nadler and Tushman’s Congruence Model (2) Sterman’s
Systems Dynamics Model (3) Quinn’s Competing Values Model (4) Greiner’s Model of
Organizational Growth (5) Stacey’s Complexity Theory Summary Key Terms End-of-Chapter
Exercises Case Study: Sarah’s Snacks by Paul Myers Chapter 4 • Building and Energizing the
Need for Change Understanding the Need for Change Seek Out and Make Sense of External
Data 13 Seek Out and Make Sense of the Perspectives of Stakeholders Seek Out and Make
Sense of Internal Data Seek Out and Assess Your Personal Concerns and Perspectives
Assessing the Readiness for Change Heightening Awareness of the Need for Change Factors
That Block People from Recognizing the Need for Change Developing a Powerful Vision for
Change The Difference Between an Organizational Vision and a Change Vision Examples of
Visions for Change IBM—Diversity 3.0 Tata’s Nano: From Vision to Failed Project Change
Vision for the “Survive to 5” Program Change Vision for “Reading Rainbow” Change Vision
for a Large South African Winemaker Change Vision for the Procurement System in a
Midsize Manufacturing Firm Summary Key Terms A Checklist for Change: Creating the
Readiness for Change End-of-Chapter Exercises Case Study: Leading Change: The Pharmacy
Team by Jess Coppla Chapter 5 • Navigating Change through Formal Structures and Systems
Making Sense of Formal Structures and Systems Impact of Uncertainty and Complexity on
Formal Structures and Systems Formal Structures and Systems From an Information
Perspective Aligning Systems and Structures With the Environment Structural Changes to
Handle Increased Uncertainty Making Formal Structural Choices Using Structures and
Systems to Influence the Approval and Implementation of Change 14 Using Formal
Structures and Systems to Advance Change Using Systems and Structures to Obtain Formal
Approval of a Change Project Using Systems to Enhance the Prospects for Approval Ways to
Approach the Approval Process Aligning Strategically, Starting Small, and “Morphing”
Tactics The Interaction of Structures and Systems with Change During Implementation
Using Structures and Systems to Facilitate the Acceptance of Change Summary Key Terms

Checklist: Change Initiative Approval End-of-Chapter Exercises Case Study: Beck Consulting
Corporation by Cynthia Ingols and Lisa Brem Chapter 6 • Navigating Organizational Politics
and Culture Power Dynamics in Organizations Individual Power Departmental Power
Organizational Culture and Change How to Analyze a Culture Tips for Change Agents to
Assess a Culture Tools to Assess the Need for Change Identifying the Organizational
Dynamics at Play Summary Key Terms Checklist: Stakeholder Analysis End-of-Chapter
Exercises Case Study: Patrick’s Problem by Stacy BlakeBeard Chapter 7 • Managing
Recipients of Change and Influencing Internal Stakeholders Stakeholders Respond Variably
to Change Initiatives Not Everyone Sees Change as Negative Responding to Various Feelings
in Stakeholders 15 Positive Feelings in Stakeholders: Channeling Their Energy Ambivalent
Feelings in Stakeholders: They Can Be Useful Negative Reactions to Change by Stakeholders:
These Too Can Be Useful Make the Change of the Psychological Contract Explicit and
Transparent Predictable Stages in the Reaction to Change Stakeholders’ Personalities
Influence Their Reactions to Change Prior Experience Impacts a Person’s and Organization’s
Perspective on Change Coworkers Influence Stakeholders’ Views Feelings About Change
Leaders Make a Difference Integrity is One Antidote to Skepticism and Cynicism Avoiding
Coercion but Pushing Hard: The Sweet Spot? Creating Consistent Signals from Systems and
Processes Steps to Minimize the Negative Effects of Change Engagement Timeliness Two-
Way Communication Make Continuous Improvement the Norm Encourage People to Be
Change Agents and Avoid the Recipient Trap Summary Key Terms Checklist: How to
Manage and Minimize Cynicism About Change End-of-Chapter Exercises Case Study:
Travelink Solutions by Noah Deszca and Gene Deszca Chapter 8 • Becoming a Master
Change Agent Factors That Influence Change Agent Success The Interplay of Personal
Attributes, Situation, and Vision Change Leaders and Their Essential Characteristics
Developing into a Change Leader 16 Intention, Education, Self-Discipline, and Experience
What Does Reflection Mean? Developmental Stages of Change Leaders Four Types of
Change Leaders Internal Consultants: Specialists in Change External Consultants:
Specialized, Paid Change Agents Provide Subject-Matter Expertise Bring Fresh Perspectives
from Ideas That Have Worked Elsewhere Provide Independent, Trustworthy Support
Limitations of External Consultants Change Teams Change from the Middle: Everyone
Needs to Be a Change Agent Rules of Thumb for Change Agents Summary Key Terms
Checklist: Structuring Work in a Change Team End-of-Chapter Exercises Case Study: Master
Change Agent: Katherine Gottlieb, Southcentral Foundation by Erin E. Sullivan Chapter 9 •
Action Planning and Implementation Without a “Do It” Orientation, Things Won’t Happen
Prelude to Action: Selecting the Correct Path Plan the Work Engage Others in Action
Planning Ensure Alignment in Your Action Planning Action Planning Tools 1. To-Do Lists 2.
Responsibility Charting 3. Contingency Planning 4. Flow Charting 5. Design Thinking 6.
Surveys and Survey Feedback 7. Project Planning and Critical Path Methods 8. Tools to
Assess Forces That Affect Outcomes and Stakeholders 17 9. Leverage Analysis 10. Employee
Training and Development 11. Diverse Change Approaches Working the Plan Ethically and
Adaptively Developing a Communication Plan Timing and Focus of Communications Key
Principles in Communicating for Change Influence Strategies Transition Management
Summary Key Terms End-of-Chapter Exercises Case Study: Turning Around Cote

Construction Company by Cynthia Ingols, Gene Deszca, and Tupper F. Cawsey Chapter 10 •
Get and Use Data Throughout the Change Process Selecting and Deploying Measures 1.
Focus on Key Factors 2. Use Measures That Lead to Challenging but Achievable Goals 3. Use
Measures and Controls That Are Perceived as Fair and Appropriate 4. Avoid Sending Mixed
Signals 5. Ensure Accurate Data 6. Match the Precision of the Measure With the Ability to
Measure Measurement Systems and Change Management Data Used as Guides During
Design and Early Stages of the Change Project Data Used as Guides in the Middle of the
Change Project Data Used as Guides Toward the End of the Change Project Other
Measurement Tools Strategy Maps The Balanced Scorecard Risk Exposure Calculator The
DICE Model Summary 18 Key Terms Checklist: Creating a Balanced Scorecard End-of-
Chapter Exercises Case Study: Omada Health: Making the Case for Digital Health by Erin E.
Sullivan and Jessica L. Alpert Chapter 11 • The Future of Organizations and the Future of
Change Putting the Change Path Model into Practice Future Organizations and Their Impact
Becoming an Organizational Change Agent: Specialists and Generalists Paradoxes in
Organizational Change Orienting Yourself to Organizational Change Summary End-of-
Chapter Exercises Notes Index About the Authors 19 20 Preface to the Fourth Edition
Difficult to see. Always in motion is the future.1 1 Spoken by Yoda in the movie The Empire
Strikes Back The world has continued to churn in very challenging ways since the
publishing of the third edition of this text. Uneven and shifting global patterns of growth,
stubbornly high unemployment levels in many parts of the world, increasing income
inequality, and serious trade disputes that threaten to transform trade patterns are severely
stressing our highly interconnected global economy. The massive credit crisis of a decade
ago was followed by unprecedented worldwide government stimulus spending and low
interest rates to promote growth, which, in turn, have resulted in escalating public debt,
exacerbated in some nations through tax cuts. These combine to threaten the capacity of
national governments to respond to future economic difficulties. In addition, wars,
insurrections and civil insurrections in parts of Africa, the Ukraine, the Middle East, and
Asia have sent masses of people searching for safety in new places. Simultaneously,
deteriorating international relationships involving major powers, fears of global pandemics
(Ebola and MERS), and the staying power of radical Islamist groups such as al-Qaeda and
ISIS affiliates, Boko Haram and Jemaah Islamiyah have shaken all organizations in affected
regions—big or small, public or private. Escalating concerns related to global warming,
species extinctions, and rising sea levels are stressing those who recognize the problems in
governments and organizations of all shapes and sizes, as they attempt to figure out how to
constructively address these emerging realities. Add to these elements the accelerating pace
of technological change and it’s easy to see why we, at times, feel overwhelmed by the
turbulence, uncertainty, and negative prognosis that seem to define the present. 21 But, all
is not doom and gloom. Progress on human rights and gender equity, reductions in extreme
poverty and hunger, declining rates of murder and violent crime, improving rates of literacy
and life expectancy, and increasing access to information and knowledge through affordable
digital resources provide evidence that progress is being made on some fronts. The growing
public willingness to tackle very difficult environmental and social issues now, not later, are
combining with innovative technologies, creative for-profit and not-for-profit organizations,

and forward-thinking politicians and leaders from all walks of life. Supportive public
policies are combining with public and private initiatives to demonstrate that we can make
serious progress on these issues, if we collectively choose to act in constructive and
thoughtful manners locally, regionally, and globally. These factors have also made us, your
authors, much more aware of the extreme influence of the external environment on the
internal workings of all organizations. As we point out in our book, the smallest of firms
needs to adapt when new competitive realities and opportunities surface. Even the largest
and most successful of firms have to learn how to adapt when disruptive technologies or
rapid social, economic, political and environmental changes alter their realities. If they fail
to do so, they will falter and potentially fail. Our models have always included and often
started with events external to organizations. We have always argued that change leaders
need to scan their environments and be aware of trends and crises in those environments.
The events of the past two years have reinforced even more our sense of this. Managers
must be sensitive to what happens around them, know how to make sense of this, and then
have the skills and abilities that will allow them to both react effectively to the internal and
external challenges and remain constant in their visions and dreams of how to make their
organizations and the world a better place to live. A corollary of this is that organizations
need a response capability that is unprecedented because we’re playing on a global stage of
increasing complexity and uncertainty. If you are a bank, you need 22 a capital ratio that
would have been unprecedented a few years ago, and you need to be working hard to
understand the potential implications of blockchain technologies, regulatory changes, and
changing consumer preferences on the future of banking. If you are a major organization,
you need to design flexibility and adaptability into your structures, policies, and plans. If
you are a public-sector organization, you need to be sensitive to how capricious granting
agencies or funders will be when revenues dry up. In today’s world, organizational
resilience, adaptability, and agility gain new prominence. Further, we are challenged with a
continuing reality that change is endemic. All managers need to be change managers. All
good managers are change leaders. The management job involves creating, anticipating,
encouraging, engaging others, and responding positively to change. This has been a theme
of this book that continues. Change management is for everyone. Change management
emerges from the bottom and middle of the organization as much as from the top. It will be
those key leaders who are embedded in the organization who will enable the needed
adaptation of the organization to its environment. Managers of all stripes need to be key
change leaders. In addition to the above, we have used feedback on the third edition to
strengthen the pragmatic orientation that we had developed. The major themes of action
orientation, analysis tied with doing, the management of a nonlinear world, and the
bridging of the “knowing–doing” gap continue to be central themes. At the same time, we
have tried to shift to a more user friendly, action perspective. To make the material more
accessible to a diversity of readers, some theoretical material has been altered, some of our
models have been clarified and simplified, and some of our language and formatting has
been modified. As we stated in the preface to the first edition, our motivation for this book
was to fill a gap we saw in the marketplace. Our challenge was to develop a book that not
only gave prescriptive advice, “how-to-do-it lists,” but one that also provided up-to-date

theory without getting sidetracked by academic theoretical complexities. We hope that we
have captured the management 23 experience with change so that our manuscript assists
all those who must deal with change, not just senior executives or organization
development specialists. Although there is much in this book for the senior executive and
organizational development specialist, our intent was to create a book that would be
valuable to a broad cross section of the workforce. Our personal beliefs form the basis for
the book. Even as academics, we have a bias for action. We believe that “doing is healthy.”
Taking action creates influence and demands responses from others. While we believe in
the need for excellent analysis, we know that action itself provides opportunities for
feedback and learning that can improve the action. Finally, we have a strong belief in the
worth of people. In particular, we believe that one of the greatest sources of improvement is
the untapped potential to be found in the people of all organizations. We recognize that this
book is not an easy read. It is not meant to be. It is meant as a serious text for those involved
in change—that is, all managers! We hope you find it a book that you will want to keep and
pull from your shelf in the years ahead, when you need to lead change and you want help
thinking it through. Your authors, Gene, Cynthia, and Tupper Note on Instructor Teaching
Site A password-protected instructor’s manual is available at study.sagepub.com/cawsey to
help instructors plan and teach their courses. These resources have been designed to help
instructors make the classes as practical and interesting as possible for students.
PowerPoint Slides capture key concepts and terms for each chapter for use in lectures and
review. A Test Bank includes multiple-choice, short-answer, and essay exam questions for
each chapter. 24 Video Resources for each chapter help launch class discussion. Sample
Syllabi, Assignments, and Chapter Exercises as optional supplements to course curriculum.
Case Studies and teaching notes for each chapter facilitate application of concepts in real
world situations. 25 26 Acknowledgments We would like to acknowledge the many people
who have helped to make this edition of the book possible. Our colleagues and students and
their reactions to the ideas and materials continue to be a source of inspiration. Cynthia
would like to thank her colleagues at the School of Business, Simmons University, Boston,
Massachusetts. In particular, she would like to thank Dr. Stacy Blake-Beard, Deloitte Ellen
Gabriel Chair of Women and Leadership, and Dr. Paul Myers, senior lecturer, who each
contributed a case to this fourth edition of the book. In addition, Paul graciously read and
gave feedback on other cases and parts of the text, suggesting ways to bring clarity to
sometimes muddled meanings. Alissa Scheibert, a Simmons library science student,
conducted in-depth research for a number of chapters. Dr. Erin Sullivan, research director,
and Jessica L. Alpert, researcher, Center for Primary Care, Harvard Medical School,
contributed two cases to this edition of the book and I am very grateful for their
contributions. Jess Coppla, a former Healthcare MBA student leader and author of one of the
cases, will someday be CEO of a healthcare organization. . . . I’m just waiting to see which
one. Colleagues Gary Gaumer, Cathy Robbins, Bob Coulum, Todd Hermann, Mindy Nitkin,
and Mary Shapiro were wonderful cheerleaders throughout the many hours of my sitting,
writing, and revising in my office: thank you all! Managers, executives, and front-line
employees that we have known have provided insights, case examples, and applications
while keeping us focused on what is useful and relevant. Ellen Zane, former CEO of Tufts

Medical Center, Boston, is an inspiring change leader; her turnaround story at the Tufts
Medical Center appeared in the second edition of this book and was published again in the
third edition; it continues to be on the Sage website for use by faculty. Cynthia has also been
fortunate to work with and learn from Gretchen Fox, founder and former CEO, FOX RPM:
the story of how she changed her small firm appeared in the second edition of the book and
the case continues to be available 27 through Harvard Business Publishing
(http://hbr.org/product/foxrelocation-management-corp/an/NA0096-PDF-ENG). Noah
Deszca, a high school teacher, was the prime author of the Travelink Solutions case, an
organization that underwent significant changes while he was working there. Katharine
Bambrick, a former student of Gene’s and the CEO of the Ontario Trillium Foundation and
the former CEO of Food Banks Canada, is another of the inspiring leaders who opened their
organizations to us and allowed us to learn from their experiences, and share it with you.
The Food Banks case appeared in the third edition of this book and is one of the additional
cases that are available on this book’s website. Special thanks to Paige Tobie for all her hard
work on the instructors’ resources. She is a gem to work with. As with the previous editions,
our partners Bertha Welzel and Steve Spitz tolerated our moods, our myopia to other things
that needed doing, and the early mornings and late nights spent on the manuscript. They
helped us work our way through ideas and sections that were problematic, and they kept us
smiling and grounded when frustration mounted. Our editors at Sage have been excellent.
They moved the project along and made a difficult process fun (well, most of the time).
Thank you, Maggie Stanley, our acquisitions editor, for keeping us on task and on time (or
trying to keep us on time…). We appreciate your style of gentle nudges. Thank you to
Janeane Calderon, our editorial assistant who was constantly on top of the various parts of
the book and helped us push through to the end. Copyeditor Lynne Curry found stray
commas and inconsistencies throughout the book: thank you for fixing the problems. Gagan
Mahindra, Production Editor, kept us wonderfully focused on the details of production:
thank you! Finally, we would like to recognize the reviewers who provided us with valuable
feedback on the third edition. Their constructive, positive feedback and their excellent
suggestions were valued. We thought carefully about how to incorporate their suggestions
into this fourth edition of the book. Thank you Mulugeta Agonafer 28 of Springfield College,
Brenda C. Barnes of Allen College, C. Darren Brooks of Florida State University, Robert Dibie
of Indiana University Kokomo, Jonathan E. Downs of MidAmerica Nazarene University,
Alexander C. Heckman of Franklin University, Scott Elmes McIntyre of University of Houston
– Clear Lake, Frank Novakowski of Davenport University, Pamela R. Van Dyke of Southern
Methodist University, Jack Wilson of the United States Naval Academy, and Diana J. Wong-
MingJi of Eastern Michigan University. In short, our thanks to all who made this book
possible. 29 30 Chapter One Changing Organizations in Our Complex World Chapter
Overview The chapter defines organizational change as “planned alteration of
organizational components to improve the efficiency and effectiveness of organizations.”
The orientation of this book is to assist change leaders—and potential change managers—in
becoming effective in their change activities. The social, demographic, technological,
political, and economic forces pushing the need for change are outlined. Four types of
organizational change are discussed: tuning, adapting, reorienting, and re-creating. Four

change roles found in organizations are described: change initiators, change implementers,
change facilitators, and change recipients and stakeholders. The terms change leader and
change agent are used interchangeably and could mean any of the four roles. The difficulties
in creating successful change are highlighted, and then some of the characteristics of
successful change leaders are described. Organizations fill our world. We place our children
into day care, seek out support services for our elderly, and consume information and
recreational services supplied by other organizations. We work at for-profit or not-for-
profit organizations. We rely on organizations to deliver the services we need: food, water,
electricity, and sanitation and look to governmental organizations for a variety of services
that we hope will keep us safe, secure, well governed, and successful. We depend on health
organizations when we are sick. We use religious organizations to help our spiritual lives.
We assume that most of our children’s education will be delivered by formal educational
organizations. In other words, organizations are everywhere. Organizations are how we get
things done. This is not just a 31 human phenomenon as it extends to plants and animals:
look at a bee colony, a reef, a lion pride, or an elephant herd and you’ll see organizations at
work. And these organizations are changing—some of them declining and failing, while
others successfully adapt or evolve, to meet the shifting realities and demands of their
environments. What exactly is organizational change? What do we mean when we talk
about it? 32 Defining Organizational Change When we think of organizational change, we
think of major changes: mergers, acquisitions, buyouts, downsizing, restructuring, the
launch of new products, and the outsourcing of major organizational activities. We can also
think of lesser changes: departmental reorganizations, installations of new technology and
incentive systems, shutting particular manufacturing lines, or opening new branches in
other parts of the country—fine-tuning changes to improve the efficiency and effectiveness
of our organizations. In this book, when we talk about organizational change, we refer to
planned alterations of organizational components to improve the effectiveness or efficiency
of the organization. Organizational components are the organizational mission, vision,
values, culture, strategy, goals, structure, processes or systems, technology, and people in an
organization. When organizations enhance their effectiveness, they increase their ability to
generate value for those they serve. The reasons for change are often ambiguous. Is the
change internally or externally driven? In July 2018, Tim Hortons (a Canada-based coffee
restaurant chain) announced that it was aiming to open 1,500 new stores in China in the
next decade.1 This is in addition to expansion efforts involving the United States, the
Philippines, Britain, Mexico, the Middle East, and Spain. Tim Horton’s has a network of
approximately 3,900 outlets in Canada and another 900 elsewhere. It has also been busy
revising its menu to shore up flattening same-store sales, adding Wi-Fi access, undertaking
major store remodeling, and making changes to its sustainability and corporate social
responsibility initiatives. What is driving these changes? The executives reported that they
were undertaking these actions in response to competitive pressures, customer needs,
market opportunities, and the desire to align their efforts with their values. For Tim
Hortons, the drivers of change are coming from both the internal and external environment.
Dunkin’ Donuts, a much larger U.S.–based chain with similarities to Tim Hortons’ business
model and competitive pressures, seems to have been pursuing similar adaptive 33

responses.2 It is essential for managers to be sensitive to what is happening inside and
outside the organization and adapt to those changes in the environment.* * Tim Hortons
and Burger King announced their $12.5 billion merger on August 26, 2014, forming the
third largest quick-service restaurant in the world. They have maintained these two distinct
brands post-merger, but have taken advantage of synergies by leveraging their respective
strengths and geographic reach. Note that, by our definition and focus, organizational
change is intentional and planned. Someone in the organization has taken an initiative to
alter a significant organizational component. This means a shift in something relatively
permanent. Usually, something formal or systemic has to be altered. For example, a new
customer relations system may be introduced that captures customer satisfaction and
reports it to managers; or a new division is created and people are allocated to that division
in response to a new organizational vision. Simply doing more of the same is not an
organizational change. For example, increasing existing sales efforts in response to a
competitor’s activities would not be classified as an organizational change. However, the
restructuring of a sales force into two groups (key account managers and general account
managers) or the modification of service offerings would be, even though these changes
could well be in response to a competitor’s activities rather than a more proactive initiative.
Some organizational components, such as structures and systems, are concrete and thus
easier to understand when contemplating change. For example, assembly lines can be
reordered or have new technologies applied. The change is definable and the end point
clear when it is done. Similarly, the alteration of a reward system or job design is concrete
and can be documented. The creation of new positions, subunits, or departments is equally
obvious. Such organizational changes are tangible and thus may be easier to make happen,
because they are easier to understand. 34 When the change target is more deeply imbedded
in the organization and is intangible, the change challenge is magnified. For example, a shift
in organizational culture is difficult to engineer. A change leader can plan a change from an
authoritarian to a more participative culture, but the initiatives required to bring about the
change and the sequencing of those initiatives are trickier to get a hold of than more
concrete change initiatives. Simply announcing a new strategy or vision does not mean that
anything significant will change since “you need to get the vision off the walls and into the
halls.”3 A more manageable way to think of such a culture change is to identify concrete
changes that reinforce the desired culture. If management alters reward systems, shifts
decision making downward, and creates participative management committees, then
management increases the likelihood that it will create cultural change over time. Sustained
behavioral change occurs when people in the organization understand, accept, and act.
Through their actions, the new vision or strategy becomes real.4 The target of change needs
to be considered carefully. Often, managers choose concrete tangible changes because they
are easiest to plan for and can be seen. For example, it is relatively easy to focus on pay and
give monetary incentives in an attempt to address employee morale. But the root cause of
these issues might be managerial styles or processes—much more difficult to recognize and
address. In addition, intervening through compensation may have unanticipated
consequences and actually worsen the problem. An example of this can be found in the
story below. Change at a Social Service Agency In a mid-sized social service agency’s family

services division, turnover rates climbed to more than 20%, causing serious issues with
service delivery and quality of service. The manager of the division argued that staff were
leaving because of wages. According to him, children’s aid societies’ wages were higher and
staff left to join those organizations. Upon investigation, senior management learned of
morale problems arising from the directive, non-inclusive management style of the
manager. Instead of altering pay rates, which would have caused significant budgetary and
equity problems 35 throughout the organization, senior management replaced the manager
and moved him to a project role. Within months, turnover rates dropped to less than 10%
and the manager decided to leave the agency.5 In this example, if the original analysis had
been accepted, turnover rates might have declined since staff may have been persuaded to
stay for higher wages. But the agency would have faced financial challenges due to higher
labor costs as well as a festering morale problem. 36 The Orientation of This Book The
focus, then, of this book is on organizational change as a planned activity designed to
improve the organization’s effectiveness. Changes that are random (occur simply due to
chance) or unplanned are not the types of organizational change that this book will explore,
except, insofar, as they serve as the stimulus for planned change initiatives. Similarly,
changes that may be planned but do not have a clear link to attempts to improve
organizational effectiveness are not considered. That is, changes made solely for personal
reasons—for personal gain, for example—fall outside the intended focus of this book. There
is a story of two stonecutters. The first, when asked what he was doing, responded, “I am
shaping this stone to fit in that wall.” The second, however, said, “I am helping to build a
cathedral.” The jobs of the two stonecutters might be the same, but their perspectives are
dramatically different. The personal outcomes of satisfaction and organizational
commitment will likely be much higher for the visionary stonecutter than for the “just doing
my job” stonecutter. Finally, the differences in satisfaction and commitment may well lead
to different organizational results. After all, if you are building a cathedral, you might be
more motivated to stay late, to take extra care, to find ways to improve things, and to help
others when help is needed. In other words, the organizational member who has a broader
perspective on the value of his or her contributions and on the task at hand is likely to be a
more committed and capable contributor. As a result, we take a perspective that encourages
change leaders to take a holistic perspective on the change and to be widely inclusive in
letting employees know what changes are needed and are happening. 37 If employees have
no sense of the intended vision and see themselves as “just doing a job,” it is likely that any
organizational change will be difficult to understand, be resisted, and cause personal
trauma. On the other hand, if employees “get” the vision of the organization and understand
the direction and perspective of where the organization is going and why, they are more
likely to embrace their future role—even if that future means they leave the organization.6
This book is aimed at those who want to be involved in change and wish to take positive
actions. We encourage readers to escape from passive, negative change recipient positions
and to move to active and healthy roles—those of change initiators, facilitators, and
implementers. Readers may be in middle manager roles or may be students hoping to enter
managerial roles. Or, they may be leaders of change within an organization or a subunit. The
book is also intended for the informal leaders in organizations who are driving change,

sometimes in spite of their bosses. They might believe that their bosses “should” be driving
the change but don’t see it happening, and so they see it as up to them to make change
happen regardless of the action or inaction of their managers. This book has an action, “how
to do it” emphasis. Nothing happens unless we, the people, make it happen. As someone
once said, “The truth is—the cavalry isn’t coming!” There will be no cavalry charging over
the hill to save us. It is up to us to make the changes needed. At the same time, this “how-to”
orientation is paired with a focus on developing a deep understanding of organizations.
Without such an understanding, what needs to be changed, and what the critical success
factors are, change efforts will be much more difficult. This twin theme, of knowing both
how to do it and what to do, underpins the structure of this book and our approach to
change. To paraphrase Zig Ziglar, “It’s not what happens to you that matters. It’s how you
respond that makes a difference.”7 Change capability is a core managerial competence.
Without skills in change management, individuals cannot operate effectively in today’s
fluctuating, shifting organizations.8 Senior management 38 may set the organizational
direction, but, in this decentralized organizational world, it is up to managers and
employees to shift the organization to accomplish the new goals and objectives. To do this,
change-management skills are paramount. In many organizations, those managers are
looked to for insights, innovative ideas, and initiatives that will make a positive difference in
their firms. Investigate firms such as Google, Cisco, Marriott, St. Jude Children’s Hospital,
Deloitte, and others listed among the 100 best to work for here and offshore, and you will
find many examples of firms embracing these practices.9 They do so with a realistic
appreciation for the fact that change management is often more difficult than we anticipate.
We believe, as do Pfeffer and Sutton, that there is a Knowing–Doing gap.10 Knowing the
concepts and understanding the theory behind organizational change are not enough. This
book is designed to provide practicing and prospective managers with the tools they will
need to be effective change agents. 39 Environmental Forces Driving Change Today Much
change starts with shifts in an organization’s environment. For example, government
legislation dealing with employment law pushes new equity concerns through hiring
practices. Globalization means that marketing, research and development, production, and
other parts of an organization (e.g., customer service’s call centers) can be moved around
the world and/or outsourced. International alliances form and reform. These and related
factors mean an organization’s competition is often global in nature, rather than local. New
technologies allow purchasing to link to production within an integrated supply chain,
changing forever supplier–customer relationships. Concerns over global warming,
sustainability, and environmental practices give rise to new laws, standards, and shifts in
consumer preferences for products and firms that exhibit superior environmental
performance. A competitor succeeds in attracting an organization’s largest customer and
upsets management’s assumptions about the marketplace. Each of these external
happenings will drive and push the need for change. These factors are summed up in the
acronym PESTEL. PESTEL factors include political, economic, social, technological,
ecological/environmental, and legal factors that describe the environment of an
organization. These are not simply private sector realities. Not-for-profits, hospitals,
schools, and governments all experience these environmental challenges as the world

shrinks and the seeming pace of change accelerates and increases in complexity. Not-
forprofits or NGOs (nongovernmental organizations) and various governmental bodies
respond to hunger in war-torn Somalia and Syria; public universities and hospitals respond
to for-profit competitors. Governments around the world deal with issues related to
enhancing their economic competitiveness and attracting employers, hopefully in
sustainable and socially responsible ways. No one is immune. Sometimes organizations are
caught by surprise by environmental shifts, while other organizations have anticipated and
planned for 40 new situations. For example, management may have systems to track the
perceived quality and value of its products versus its competition’s. Benchmarking data
might show that its quality is beginning to lag behind that of a key competitor. These
environmental scanning and early warning systems allow for action before customers are
lost or provide paths to new customers and/or new services. Toyota had such systems in
place, but management appears to have responded inadequately. Did Toyota or GM Know
About the Safety Defects? 41 Misreading the Environment and Associated Risks On April 5,
2010, the U.S. government’s transportation department stated it would seek $16.4 million
from Toyota for not notifying the government about potential accelerator pedal problems.
“In taking the step, federal authorities are sending the strongest signal yet that they believe
the carmaker deliberately concealed safety information from them.”11 Did Toyota know
about these deficiencies and respond by denying they existed and covering up? If so, this is
an example of an inappropriate organizational response to environmental stimuli. The same
question could be asked of General Motors concerning ignition switch problems in the
Cobalt and other brands. By GM’s admission, they first became aware of this problem in
2001. It was the subject of a technical service bulletin in 2005, but there was no recall until
2014, in the aftermath of multiple deaths and injuries, mounting public scrutiny, and
lawsuits. The global recall totaled 2.6 million vehicles by May 2014: there have been
humiliating U.S. congressional hearings, CEO Mary Barra has publicly apologized, and GM is
sought immunity from the courts for lawsuits related to periods before its 2009 bankruptcy.
To say this had the potential to undermine confidence in GM and its brand would be a gross
understatement and points to the danger of failing to act and implement needed changes in
a timely manner.12 It’s beyond the scope of this book to provide an in-depth treatment of
all of the various trends and alterations in the environment. However, we will highlight
below some of the important trends to sensitize readers to their environments. As is always
the case, organizations find themselves influenced by fundamental forces: changing social,
cultural, and demographic patterns; spectacular technological achievements that transform
how we do business; concerns about the physical environment and social responsibility that
are producing demands for changes in our products and business practices; a global
marketplace that sends us competing worldwide and brings competition to our doorsteps;
political and legal forces that have the potential to transform the competitive landscape;
continued political uncertainty in many countries that 42 has the potential to introduce
chaos into world markets; the aftermath of the economic turmoil that rocked the world
economy in 2008; and trade wars in 2018 that promoted further uncertainty. Responses to
the External Environment Can Escalate Risks The financial crisis of 2008 occurred because
banks failed to comprehend the risks they took with asset-backed securities and other

derivatives. Incentive systems drove bankers to take on excessive risks for excessive profits.
They denied the evidence presented to them, and when the bubble burst, the results were
catastrophic. For example, when warned by his chief risk officer, who proposed shutting
down the mortgage business in 2004, the head of Lehman Brothers threatened to fire him!
This rush for profits drove many banks. Chuck Prince, the head of Citigroup at the time, just
before the credit markets seized up in August 2007, said, “As long as the music is playing,
you’ve got to get up and dance. We’re still dancing.”13 Clearly bankers misread both the
ethical and business implications of what was going on inside their firms. Either there was
collective myopia at work with respect to mounting evidence of excessive risk from very
credible sources,14 or the rewards and short-term performance pressures were such that
they chose not to attend to the warning clouds. The Changing Demographic, Social, and
Cultural Environment Age Matters. The social, cultural, and economic environment will be
dramatically altered by demography. Demographic changes in the Western world and parts
of Asia mean that aging populations will gray the face of Europe, Canada, China, and
Japan.15 The financial warning bells are already being sounded. Even before the huge
government deficits of 2009 and beyond that Western nations have been digging
themselves out from under, Standard & Poor’s predicted that the average net government
debt-to-GDP ratio for industrialized nations will increase from 33% in 2005 to 43 180% by
2050, due to rising pension and health care costs,16 if changes are not undertaken. In 2013
and 2016 they reported modest progress had been made on this debt challenge, but the
problems and related societal challenges have certainly not gone away.17 Although the
United States will age less quickly, Europe and Japan will face a dependency crisis of senior
citizens requiring medical care and pension support. By 2050, the median age in the United
States is projected to be 41 versus approximately 50 in Europe. The United States will keep
itself younger than Europe through immigration and a birth rate that is close to
replacement level,18 though even here growth assumptions have come under question as
the rate of immigration has declined in the aftermath of the economic slowdown and
questions around emigration policies remain highly politicized. Even with this influx, if
nothing changes, it is estimated the U.S. governmental debt-to-GDP ratio will grow to 472%
of GDP by 2050, due mainly to pension and health care costs.19 Aging European countries
will be around 300 –400% of GDP, despite older populations, due to more costefficient
approaches in these areas. On the high side, Japan is predicted to reach 729%. The
European Union’s population is projected to peak in 2025 at around 470 million and then
begin to decline, while the United States reaches 335 million in 2020 and continues to grow
thereafter to 398 million in 2050. The decline in the European Union would occur much
earlier if it were not for immigration. Throughout the world, fertility rates are falling and
falling fast.20 In 1974, only 24 countries had fertility rates below replacement levels. By
2009, more than 70 countries had rates below 2.1. In some countries, the swings are
dramatic. The fertility rate in Iran dropped from 7 in 1984 to 1.9 in 2009, a huge shift. 44
Source: U.N. Population Division. Some see a close tie between female education, fertility
rates, and economic growth. When economies are poor, the fertility rate is high and there
are many young dependents relying on working adults and older siblings for sustenance.
When fertility rates drop, there is a bulge of people, meaning the ratio of working adults to

dependents increases, leading to an increase in per capita wealth. Mexico and China are
examples of this currently. When this bulge ages, dependent, nonworking seniors become a
larger percentage of the population, so these advantages tend to disappear over time, as
incomes rise and fertility rates fall.21 As discussed above, this has happened and is
happening in Europe and Japan. India, Africa, and Mexico are examples of areas with a
smaller proportion of dependents (the young and the old) relative to their working
populations, and this is something referred to as an economic dividend. However, it is only a
dividend if the population has the skills and abilities needed, and there are infrastructure
and policies in place to support employment— something many developing nations are
finding very challenging.22 45 These demographic shifts can take decades to work their
way through, and the economic implications for organizations are significant. Imagine 400
to 500 million relatively wealthy Americans and the impact that will have on global
economic power, assuming that pension and health care challenges are effectively managed.
Consumer spending in developing countries is expected to grow to $44.8 trillion by 2030,
eclipsing the $19.2 trillion in North America and Europe.23 Also imagine the impact of a
graying Europe and Japan’s declining workforce. Some estimates put the fiscal problems in
providing pensions and health care for senior citizens at 250% of national income in
Germany and France.24 Pension costs can become a huge competitive disadvantage at the
company level too. At General Motors, there were 2.5 retirees for every active worker in
2002. These so-called “legacy” costs were $900 per vehicle at that time due to pension and
health care obligations. These costs rose to $1,800 by 200625 and retired employee–related
costs were one of the key reasons that GM sought bankruptcy relief in 2009. Debt relief
certainly alleviated the immediate pressure, but as the number of retired to active GM
employees continues to grow, this challenge is not going away.26 Companies appear to be
ill prepared to deal with this aging population.27 Both private and public sector employers
are waking up to these pressures and attempting to bring about changes to their pension
programs that will be more sustainable, but the journey will not be easy. Public pushback to
reductions in pension income and other entitlement programs has been strong, and even
relatively modest proposals for shifts to policies such as increasing the age of retirement by
a year or two have faced widespread resistance. This is resistance that scares politicians
because these are also people who are most likely to vote and who are also feeling
vulnerable as they find their savings are insufficient to sustain their lifestyle.28 An aging
population also provides new market opportunities— would you have predicted that the
average age of a motorcycle purchaser would be over 49? That’s Harley-Davidson’s 46
experience.29 With aging populations, organizations can expect pressures to manage age
prejudice more effectively. Subtle discrimination based on age will not be accepted.
Innovative solutions will be welcomed by aging members of the workforce and an
increasing necessity for employers. See the story below. Older Workers Can’t Be Ignored
“The day is coming when employers are going to embrace the value of older workers. They
don’t have a choice,” writes Kerry Hannon. Demographic and fiscal realities are making the
retention of older members of the workforce escalate in importance and give rise to the
innovations in working relationships, from full time to flexible work relationships and
contract positions. Some employers are realizing the benefits that these employees can

bring with them and are recognizing the importance of investing in them before their
knowledge walks out the door. Employers that fail to adjust their approach to older
employees could find themselves seriously at risk as U.S. labor markets reflect the
demographic realities.30 KPMG has publicly recognized the benefits, noting that “older
workers tend to be more dedicated to staying with the company, a plus for clients who like
to build a relationship with a consultant they can count on to be around for years.”31
Diversity Matters Other demographic issues will provide opportunities and challenges. In
the United States, Latinos will play a role in transforming organizations. The numbers of
Latinos jumped from 35.3 million during the 1990s, to 55.4 million or 17.4% of the
population in 2014 (up from 13% in 2000), making them the largest ethnic/racial group in
the United States. They are also much younger (29 versus the national average age of 37.2),
and 65.6% of its members have been born in the United States. Significantly, the largest
growth often is in “hyper-growth” Latino destinations such as Nevada and Georgia,32 some
of which have seen an increase of more than 300% in Latino populations since 1980. The
immigration component of this growth rate was adversely affected by the U.S. economic
downturn and improvements in the Mexican economy, but it is predicted to 47 continue
upward due to domestic population growth, difficult conditions in other parts of Latin
America, and the impact that a return to economic health in the United States will have on
immigration. One of the outcomes of hyper-growth in certain urban areas has been an
imbalance of Latino males and females. In the non-Latino population, the ratio of males to
females is 96:100. In the Latino population, ratios as high as 118:100 are seen in the hyper-
growth destinations.33 While the specific implications for businesses are unclear, the
general need for response and change is not. Notions of cultural norms (including those
around English literacy and dominant language used) and markets could be shattered by
such demographic shifts. There have also been significant demographic shifts in Europe and
parts of Asia, as people move from disadvantaged areas (economic, social, and political) in
search of greater opportunities, security, and social justice. These trends are likely to
continue, and as in the United States, they provide both challenges and opportunities. For
countries like France and Austria, they help to moderate the effects of an aging population
by providing new entrants to the workforce and new customers for products and services.
However, they also represent integration challenges in terms of needed services and there
has been a backlash from some groups, who see them as both an economic and social threat.
Resistance to immigration reform in the United States, the tightening of emigration rules in
Canada, the rise of antiimmigration political parties in Western Europe, and the January
2019 shut-down of the U.S. federal government over the disputed wall on the U.S.-Mexico
border are evidence of this. Our assumptions about families and gender will continue to be
challenged in the workplace and marketplace of the future. Diversity, inclusiveness, and
equity issues will challenge organizations with unpredictable results. The heated debates
that occurred in the United States in 2006 concerning legislation related to illegal or
undocumented immigrants, temporary workers, and family unification continue to provoke
passionate positions and no resolution as of 2019. In Europe, debate around these 48 topics
has given rise to some electoral success by what used to be fringe parties in Sweden, France,
and Italy (to name three), and isolated examples of violence.34 Some nations have

implemented laws around certain religious practices (typically associated with dress and
visible symbols in schools and workplaces) that are viewed by many as discriminatory.35
Matters related to same-sex marriage, gender identity, and gender equity continue to be
challenging for many organizations, as laws and behavioral norms related to what is
acceptable slowly evolve. The front-page coverage devoted to the drafting by the St. Louis
Rams of Michael Sam, the first openly gay professional football player, testifies to the
attention and emotions these matters can generate.36 In too many parts of the world they
represent life and death issues. The same is true for matters of gender violence, as seen in
the rise of the #MeToo movement in the United States and other parts of the world. Bad
behavior is being exposed, attitudes are changing, and governments and organizations are
beginning to alter policies and procedures in meaningful ways. Reactions to the reported
behaviors of Harvey Weinstein (film producer), Roger Ailes (Fox News chairman), and
many others attest to this. Christine Blasey Ford and Brett Kavanaugh’s 2018 Supreme
Court hearing concerning allegations of gender violence attracted over 20 million
viewers37 and the strength of subsequent responses suggest public concerns and demands
for action on gender-related matters are increasing. In some nations, employment- and
human rights-related legislation have gone a long way toward advancing the interests and
acceptance of diversity, by providing guidance, rules of conduct, and sanctions for those
who fail to comply. However, issues related to gender, race, and diversity still need to be
attended to by organizations. Participation and career advancement rates and salary level
differences continue to attract the attention of politicians, the public, and the courts.
Further, they constrain the development of talent in organizations and have adverse
consequences on multiple levels—from the ability to attract and retain to performance and
attitudinal outcomes that can, in turn, influence the culture and work climate of the firm.38
49 What happens when this boils over? In 2014 the intense news coverage and disciplining
of Donald Sterling, the owner of the Los Angeles Clippers NBA franchise, for racist
comments made during a private conversation, point to the extreme distress it caused
members of the team and the reputational and brand consequences his behavior had on the
franchise and the league itself. Only the swift actions of NBA Commissioner Adam Silver
contained the damage, facilitated the sale of the franchise, and clearly signaled what was
expected of owners.39 Risks in this area are not just related to the actions of senior
management. Social media exposure extends the risks to all levels of the firm, where
postings from organizational members can and do go viral with adverse consequences
(more will be said about this later). Employees in the United States have certain protections
when it comes to discussing working conditions with others online. In the case of fast-food
restaurants, this has manifested itself into a very public national campaign to increase the
minimum wage from $7.50 to $15.00 per hour. This campaign began on social media and is
now giving rise to pay increases by some firms and minimum wage increases at the state
level.40 Firms are finding they must respond very carefully, in part because of the public’s
connection to a workforce where matters of age, gender, race, ethnicity, and economic
fairness are very visible.41 When employee postings go over the line on matters of race,
gender, diversity, and equity, firms need to act and be seen to be acting quickly and
appropriately in order to control damage.42 Being viewed as proactive and progressive in

these areas can create advantages for firms in terms of attraction, retention, and the
commitment levels of employees and customers. Firms such as TD Bank communicate this
commitment very publicly and have been recognized as one of the best employers by
Diversity Inc., Corporate Knights, and the Human Rights Campaign.43 Multinational
corporations, such as IBM, view workforce diversity management as a strategic tool for
sustaining and growing the enterprise.44 That doesn’t mean it is easy. Google has sought to
increase the diversity of its workforce for several years. In May 50 2014 it publicly
recognized its current lack of diversity (30% women, 2% black, and 3% Hispanic), and
committed itself to aggressively address this through significant external and internal
initiatives geared to attracting more individuals from these groups to technical careers and
Google.45 Smaller and medium-size firms (particularly tech start-ups) are increasingly
recognizing the importance of this, as they attempt to scale their operations. Race, gender,
age, and diversity-related challenges multiply once organizations extend their footprints
internationally. Differing rules, regulations, cultural norms, and values add to the change
leadership challenges that need to be managed, as people learn to work with one another in
efficient, effective, and socially appropriate ways. Think of the workforce challenges that a
North American, Brazilian, or Indian firm needs to address when establishing its presence
in a different part of the world. How will they deal with norms and values in these areas that
run contrary to their core values? This is not just an issue for larger organizations.
Increasingly, smaller firms find themselves facing international challenges as they seek to
grow. These come in many forms—from managing virtual, globally dispersed teams and
supply chains, to dealing with the complexities of joint ventures. While the challenges can
seem daunting, an increasing number of small and midsize companies are succeeding on the
global stage. A study of 75 such firms highlights the strategies and tactics that have
produced positive results. Change leadership skills in these firms play a critical role in their
survival and success.46 The Physical Environment and Social Responsibility Matters
Concerns over global warming, the degradation of the environment, sustainability, and
social responsibility have escalated societal pressure for change at the intergovernmental,
governmental, multinational and national corporate, and community levels. Accountability
for what is referred to as the “triple bottom line” is leading firms to issue audited
statements that report on economic, social, and ecological performance with the goal of
sustainability in mind.47 The 2013 fire and building 51 collapse involving garment
suppliers in Bangladesh (1,100 workers killed) and the 2014 spread of the Ebola virus in
West Africa intersected with questions about the role of multinational corporations in the
health and safety of people in developing countries. The 2010 pictures of BP’s oil well
gushing millions of gallons into the Gulf of Mexico combined with pictures of oil-coated
pelicans, drought, extreme heat, storm-related flooding, and disappearing ice masses
reinforce the message that action is urgently needed. While the Paris Agreement on Climate
Change was hailed as a breakthrough, the United States decision to withdraw from it has
cast into doubt the future of coordinated global abatement efforts. However, the increasing
frequency of extreme weather events (e.g., floods, storms, droughts, extreme heat events)
and their human impact will cause the pressure for action to intensify in the years ahead.
The question is more a matter of how quickly the intensifying pressure for action will reach

a tipping point and will that tipping point come in time? The growing number of credible
reports expressing serious concerns over the future of seaside metropolises such as Miami
due to sea level rises, the increasing frequency of storms, and imminent threats to its water
supply will hopefully hasten that tipping point and advance needed changes before it is too
late.48 There is also mounting evidence of the advantages that can accrue to organizations
that think about these issues proactively and align their strategies and actions with their
commitment to sustainability and corporate social responsibility.49 Reported benefits
range from increased employee commitment to positive customer reactions and improved
financial performance. The reputational damage firms incur when they are found to have
failed to behave responsibly can be severe (e.g., Volkswagen’s falsification of diesel
emissions tests).50 New Technologies In addition to responding to environmental and
demographic changes in the workplace and marketplace, organizations and their leaders
must embrace the trite but true statements about the 52 impact of technological change.
Underpinning technological change is the sweeping impact that the digitization of
information is having. The quantity of data available to managers is mindboggling. It is
estimated that digital data will grow from 400 billion gigabytes of Web-enabled data in
2013 to 40 trillion gigabytes by 2020.51 The explosion in the amount of data available will
be aided by the impact of inexpensive nano-scale microelectronics that will allow us to add
sensors and collection capacity to just about anything. The use of data mining
methodologies and artificial intelligence is becoming increasingly common in organizations
that seek to transform data into information.52 The following list of technological
innovations points to the breadth of changes we can anticipate. This is not the stuff of
science fiction. In most of these areas, applications are already present and costs are
declining rapidly: Software that writes its own code, reducing human error Health care by
cell phone, laptop, and app Vertical farming to save space and increase yield53 The Internet
of Things, cloud technology, and crowd sourcing are providing access to massive data pools
that can be translated into useful information and action. The automation of knowledge
work Advanced robotics, from industrial applications to surgery Wearable computing, from
basic data gathering to human augmentation and computer–brain interfaces Autonomous
and near autonomous vehicles Next-generation genomics, from agricultural applications to
substance production (e.g., fuel) and disease treatment applications Renewable energy and
energy storage breakthroughs that will change energy access and cost equations 3-D
printing for applications as varied as the production of auto parts and human body parts
Advanced materials (e.g., nano technology) for a host of applications that will result in
dramatic reductions in weight and improvements in strength, flexibility, and connectivity
Advanced oil and gas exploration and recovery technologies54 53 The use of blockchain
technologies and cyber currencies is likely to change the way we undertake and securely
record transactions on digital ledgers that can’t be tampered with. These can be used to
record and track the ownership those assets over time, execute contracts, transfer
ownership rights and obligations, and make payments, to name a few of the potential
applications. Technology has woven our world together. The number of international air
passengers rose from 75 million in 1970 to an estimated 3.7 billion in 2016.55 The cost of a
3-minute phone call from the United States to England dropped from more than $8 in 1976

to less than $0.06 in 2014 when VoIP (voice over Internet protocol) is used for a call to a
landline or cell phone. When both the sender and receiver have the appropriate software
(e.g., Skype, WhatsApp) then the cost goes to 0. The number of transborder calls in the
United States was 200 million in 1980.56 Estimates of the numbers today are in the tens of
billions. VoIP has disrupted traditional long-distance telephone markets dramatically, and
the proliferation of alternative communication channels, including SMS texting, BBM
(Blackberry Messenger), Facebook, and their equivalents on other platforms have
transformed the communication landscape. The number of cell phones in use totaled 6.8
billion in 2013, meaning one for almost every person alive.57 In 2017, there were an
estimated 2.32 billion smartphone users, meaning access to digital information and apps for
everything from weather forecasts to online purchasing and the transfer of funds. Even
those without access to a bank or smartphone can transfer cash safely and securely on a
regular cell phone in some developing parts of the world—Google “MPesa” for an example
of this.58 Our embrace of digital technology and connectedness has opened the world to us
and made it incredibly accessible, but it has come with costs. Security concerns related to
viruses and hacking have also escalated, and serious breaches are a common occurrence.
The Ponemon Institute estimates that in the United States alone, 110 million adults had
their personal information exposed by hackers during a 12-month period in 2013. In
September 2018 Facebook reported that 50 million of its accounts 54 were directly affected
by a hack.59 The cost to firms responding to these threats and breaches are in the billions,
and that doesn’t include the damage done to customer trust and loyalty. Costs related to
online fraud and identity theft are in the billions (some put the estimates in excess of $100
billion) and growing rapidly. These issues will not go away any time soon.60 Issues related
to the loss of privacy, industrial espionage, and sabotage involving both firms and
government agencies have also become common.61 On a business-to-business level, supply
chains woven together through software allows them to operate effectively and efficiently,
while at the same time opening them to risks.62 With the Internet, students around the
globe can access the same quality of information that the best researchers have if it is in the
public domain (which is increasingly the case) and if their government hasn’t censored
access to it. At the same time, the technology that has made the world smaller has also
produced a technological divide between haves and have-nots that has the potential to
produce social and political instability. Aspects of the gap are closing, as is seen in the
growth of cell phones, smartphones, and Internet access in the developing world. Laptops
and tablets are now available at well under $100, and the cost in India has dropped to below
$50.63 Lack of access to clean water, sufficient food, and needed medication is less likely to
be tolerated in silence when media images tell people that others have an abundance of
such resources and lack the will to share. Events such as the Arab Spring, Occupy Wall
Street, the 2014 election of Narendra Modi as India’s prime minister, and the 2017 Women’s
March point to the power this technology has in mobilizing public interest and action.
Technology transforms relationships. Facebook, LinkedIn, Twitter, and their equivalents
keep us connected, 19% of U.S. newlyweds in 2017 were reported to have met online, and
people have even been found attempting to text in their sleep.64 The New Change Tool on
the Block Social media has fundamentally altered thinking about change management. It has

changed how information is framed, who frames 55 it, and how quickly it migrates from the
few to the many. It can stimulate interest, understanding, involvement, and commitment to
your initiative, and it can also be used to create anxiety and confusion, and used to mobilize
opposition and resistance. It can create communities of shared interest, but it can also serve
to isolate communities when they choose to only search out information that confirms their
view of the situation. The one thing it can’t be is being ignored! Our purpose is not to
catalogue all new and emerging technologies. Rather, our intent is to signal to change
leaders the importance of paying attention to technological trends and the impact they have
on organizations, now and in the future. As a result of these forces, product development
and life cycles are shortened, marketing channels are changing, and managers must respond
in a time-paced fashion. Competitors can leapfrog organizations and drop once-market-
leaders into obsolescence through a technological breakthrough. The advantages of vertical
integration can vanish as technical insights in one segment of the business drive down the
costs, migrate the technology through outsourcing to other segments, or otherwise alter the
value chain in ways that had not been anticipated. Is this overstating the importance of
paying attention to how rapidly technological and social change can alter the competitive
landscape? BlackBerry went from creating and dominating the smartphone business to less
than 3% market share in five years. Dramatic downsizing and reinvention became the order
of the day as the BlackBerry executives searched for new paths and renewed market
relevance; it took them years to regain their competitive footing as a cybersecurity software
and connected cars firm.65 Now shift your thoughts to the automotive sector. What will the
emergence of self-driving electric vehicles mean for manufacturers and their suppliers and
distributors? What will they mean for city planners, urban transit, and the taxi driver?
Prototypes are currently driving on the streets of Mountain View, California, and elsewhere.
Expectations are that these sorts of vehicles will be for sale by 2020.66 The watchword for
change leaders is: be aware of technological trends and be proactive in considering how to
respond to organizationally relevant ones. 56 Political Changes The external political
landscape of an organization is a reality that change leaders need to pay attention to and
figure out how to engage. Even the largest of multinationals has minimal impact on shaping
the worldwide geopolitical landscape and the focus of governing bodies.67 However, if they
are attentive and nimble, their interests will be better served. The collapse of the Soviet
Empire gave rise to optimism in the West that democracy and the market economy were the
natural order of things, the only viable option for modern society.68 With the end of
communism in Russia, there was the sense that there was no serious competitor to free-
market democracy and the belief existed that the world would gradually move to
competitive capitalism with market discipline. Of course, this optimism was not realized.
Nationalistic border quarrels (India–Pakistan, for example) continue. Some African
countries have become less committed to democracy (Zimbabwe and Ethiopia). Nation-
states have dissolved into microstates (Yugoslavia and Sudan) or had portions annexed as
in the case of Crimea. While American power may still be dominant worldwide, September
11, 2001 (9/11) demonstrated that even the dominant power cannot guarantee safety. Non-
nation-states and religious groups have become actors on the global stage. The Middle East,
north and central parts of Africa, the Ukraine, Venezuela, and Central Asia continue to be in

turmoil, creating political and economic uncertainty. Changes in the economic performance
of nations have also altered the geo-political landscape. Growth in China and India, though it
has slowed, continues to advance much more than twice the rate of the developed world.69
They led the world out of the 2007–2008 crash, and in some periods have been joined by
other African and Asian nations that are experiencing more rapid economic growth than the
developed world. However, progress in the developing world has slowed in the face of
global concerns related to protectionism, trade wars, and constrained capital 57 flows70.
Grinding poverty rates, though improving, are still the reality for hundreds of millions of
people who live in these areas.71 As organizations become global, they need to clarify their
own ethical standards. Not only will they need to understand the rules and regulations of
each country, they will also have to determine what norms of conduct they will work to
establish for their organizational members, and what constitutes acceptable and
unacceptable behavior. Peter Eigen, chairman of Transparency International, states,
“Political elites and their cronies continue to take kickbacks at every opportunity. Hand-in-
glove with corrupt business people, they are trapping whole nations in poverty and
hampering sustainable development. Corruption is perceived to be dangerously high in
poor parts of the world, but also in many countries whose firms invest in developing
nations.”72 Left unaddressed, political corrupt…

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