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SUCCESS FACTORS IN LEARNING & CHANGE?. Dr David Spicer Senior Lecturer in Organisational Change D.P.Spicer@bradford.ac.uk. Accelerating Corporate Transformations (Miles, 2010). Changes must be bold and rapid to succeed Organizational ‘speed brakes’: Cautious Management Culture
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SUCCESS FACTORS IN LEARNING & CHANGE? Dr David Spicer Senior Lecturer in Organisational Change D.P.Spicer@bradford.ac.uk
Accelerating Corporate Transformations (Miles, 2010) • Changes must be bold and rapid to succeed • Organizational ‘speed brakes’: • Cautious Management Culture • Business-as-Usual Management Process • Initiative Gridlock • Recalcitrant Executives • Disengaged Employees • Loss of Focus During Execution
How to Thrive in Turbulent Markets (Sull 2009) • Agility to spot and exploit market changes: • Operational : Identify and seize opportunities more quickly than rivals • Portfolio: Shift resources into attractive opportunities • Strategic: Identify and seize game changing opportunities • Absorption to withstand market shifts: • Low fixed costs • War chest of cash • Diversified cash flows • Vast size • Tangible resources • Intangible resources • Customer lock-in • Protected core market • Powerful patron • Excess staff
Champ or Chump? 1 5 High 5 Dancers Champs AGILITY Power-houses Chumps 1 Low Low High ABSORPTION
The Ambidextrous Organisation (Birkinshaw & Gibson, 2005) 1 7 High 7 High-Performance Country-Club Social Support Context Low-Performance Burn-out 1 Low Low High Performance Management Context
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
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) • Sense and shape opportunities and threats • Seize opportunities • Enhance, combine, protect and reconfigure assets (Teece 2007)
Stages of Organizational Transformation (after Dixon et al. 2010) Stage I Stage III Stage II Leadership Transformational Contingent Transactional Organizational Learning Awareness of Need to Change Exploitation Exploration Search & Innovation Dynamic Capabilities Institutional Imprinting Deployment Sustainable Competitive Advantage Performance Short-term Survival
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.