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Explore alternative change tactics, from incremental to radical, influencing the speed and nature of organizational transformation. Learn how to implement revolutionary and evolutionary tactics effectively through examples and strategic project phases.
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Alternative Change Tactics Incremental Radical Change Change Revolutionary Unnecessary “Fit” Tactics Pain Evolutionary “Fit” OK if plenty of time
Change Tactics Multi-organization Multi-processes Single Process FOCUS OF CHANGE Transformational Incremental (Radical) Evolutionary SPEED OF CHANGE Revolutionary NATURE OF CHANGE
Examples of Radical Tactics Analysis/Design Phase - Use of Outsiders Consultants employees with no “old” process knowledge executives from outside - Collocate and isolate the design team Little communication to non-team members - Experiment with new structures Self-managed/empowered teams Teams managing teams
Examples of Radical Tactics Pilot Phase - Co-locate/isolate the pilot team Limited communication to broader organization - Open a distant, greenfield location Implementation Phase - Firm milestones established for deliverables
Design may be radical but implementation is incremental Reengineering is a DESIGN activity
Alternative Change Tactics Design/pilot assuming a clean slate. Revolutionary change tactics. Implement assuming existing state. Evolutionary change tactics.
The Use of Revolutionaryand Evolutionary Tactics of Change Energy Employed Revolutionary Evolutionary Tactics Tactics Analysis/ Pilot Implementation Design PROJECT PHASES Source: Stoddard and Jarvenpaa, 1995
Senior Management Supportby Project Phase Recommended situation Typical situation High High Low Low Analysis Pilot Implementation & Design Analysis Pilot Implementation & Design
Communications Recommended situation Typical situation High High Comm. Breath and Depth Low Low Analysis Pilot Implementation & Design Analysis Pilot Implementation & Design
Design can be mandated Implementation must be owned Design Implementation may involve redesign
Change Levers - Leadership - Employee Involvement - Communication - Need for the Transformation - Milestones - Culture/Structure
FOLLOW-UP Jan 2000 Launched Medtronic.com (vertical portal) Partners: Microsoft, IBM, WebMD Within 18 months data from anywhere Feb 2000 Created E-business Center to manage its Internet strategy ($230M in 3 years) Mar 2000 Medtronic, J&J, GE Medical Systems, Baxter, and Abbott announced a global healthcare exchange
THE PRIMARY OBJECTIVES OF THE MEDTRONIC CASE STUDY WERE: 1. The role of CEOs in transformation initiatives. 2. The approaches to transformation: analysis, design, and implementation. 3. The value of IT in transforming a company. 4. Successful transformations requires involvement and participation of all levels. 5. Businesses can be transformed, but long-term benefits need to encompass communication systems and the sharing of intellectual assets.