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www.bradford.ac.uk/management
SUCCESS FACTORS IN LEARNING & CHANGE?
Dr David SpicerSenior Lecturer in Organisational Change
Accelerating Corporate Transformations (Miles, 2010)
• Changes must be bold and rapid to succeed
• Organizational ‘speed brakes’:1. Cautious Management Culture
2. Business-as-Usual Management Process
3. Initiative Gridlock
4. Recalcitrant Executives
5. Disengaged Employees
6. Loss of Focus During Execution
How to Thrive in Turbulent Markets (Sull 2009)
• Agility to spot and exploit market changes:1. Operational : Identify and
seize opportunities more quickly than rivals
2. Portfolio: Shift resources into attractive opportunities
3. Strategic: Identify and seize game changing opportunities
• Absorption to withstand market shifts:1. Low fixed costs
2. War chest of cash
3. Diversified cash flows
4. Vast size
5. Tangible resources
6. Intangible resources
7. Customer lock-in
8. Protected core market
9. Powerful patron
10. Excess staff
Champ or Chump?
Low
Low
High
High
AG
ILIT
Y
ABSORPTION
Dancers Champs
ChumpsPower-houses
55
1
1
The Ambidextrous Organisation (Birkinshaw & Gibson, 2005)
Low
Low
High
High
Soc
ial S
uppo
rt C
onte
xt
Performance Management Context
Country-Club
High-Performance
Low-Performance
Burn-out
77
1
1
Adaptive & Generative Learning (Senge, 1990)
• Adaptive Learning:– coping and dealing with the environment in
new and better ways– propensity to work with know quantities
• Generative Learning:– the development of new skills and new ways
of working– propensity to innovate
SME Learning & PerformanceSales Profit Efficiency Image Quality
Leadership – change 0.28 0.28 0.21 0.43 0.53
Leadership – people 0.16 0.28 0.40 0.50
Leadership – task -0.19 -0.23 0.19
Learning – adaptive 0.17 0.13 0.47 0.13 0.46
Learning – generative 0.26 0.31 -0.14 0.44 0.26
Strategy – innovation 0.29 0.25 0.24 0.37
Strategy – cost min. -0.20 -0.19 0.15 -0.21
HRM – employee 0.16 0.41 0.45
HRM – control -0.21 -0.25 0.19 -0.20 -0.18
Implications
• Innovative, change oriented, people focused and learning enabled approaches are likely to be beneficial, but not at the expense of efficiency and cost and control oriented practices.
• The challenge for firms in maintaining and combining the strengths of the different perspectives and avoiding the pitfalls of focussing entirely upon a single approach.
• But raises more questions?
Dynamic Capabilities
• “the capacity of an organization to purposefully create, extend or modify its resource base”
(Helfat et al. 2007: 4)
1. Sense and shape opportunities and threats
2. Seize opportunities
3. Enhance, combine, protect and reconfigure assets
(Teece 2007)
Stages of Organizational Transformation (after Dixon et al. 2010)
Stage I Stage II Stage III
Leadership
Organizational Learning
Dynamic Capabilities
Performance
Transactional
Exploration
Search & Innovation
Sustainable Competitive Advantage
ContingentTransformational
Exploitation
Deployment
Short-term Survival
Awareness of Need to Change
Institutional Imprinting
A Question...
• What capabilities are needed to sustain (your) organizations over the next 10 years?
References• Birkenshaw J. & C. Gibson (2005) The ambidextrous organization, AIM Executive
Briefing, London: Advanced Institute of Management Research.• Dixon, S.E.A., K.E. Meyer & M. Day (2010) Stages of organizational transformation in
transition economies: A dynamic capabilities approach, Journal of Management Studies 47: 416-36.
• Helfat, C., S. Finkelstein, W.Michell, M.A. Peteraf, H. Singh, D. Teece & S. Winter (2007) Dynamic Capabilities: Understanding Strategic Change in Organizations. Malden MA: Blackwell.
• Miles, R.H. (2010) Accelerating corporate transformations (don’t lose tour nerve), Harvard Business Review, January.
• Senge P. (1990) The Fifth Discipline: New York: Doubleday.• Sull, D. (2009) How to thrive in Turbulent markets, Harvard Business Review,
February. • Teece, D.J. (2007) Explicating dynamic capabilities: The nature and microfoundations
of (sustainable) enterprise and performance, Strategic Management Journal 18: 504-34.