Organization Transformation

Definition

• It is a term referring collectively to such activities as reengineering, redesigning and redefining business systems. • Organization Transformation can occur in response

to or in anticipation major changes in the organization’s environment or technology.

Kinds of Interventions

1. Organization culture

2. Self-Designing

3. Organization learning and knowledge

Characteristics of Transformational Change

1. Change is triggered by environmental and internal disruption.

Transformational change occurs in response to atleast kinds of disruption:-1. Industry

discontinuities

2. Product lifecycle shifts

3. Internal company dynamics

2. Change is systemic and revolutionary. Transformational change involves reshaping the

organization’s culture and design element. These changes can be characterized as systemic

and revolutionary cause nature of the organization is altered fundamentally.

3. Change demands a new organizing paradigm.

Organization undertaking transformational change are, by definition, involved in 2nd-order or gamma types of change.

Gamma change involves discontinuous shifts in mental or organizational frameworks.

4. Change is driven by senior executives and line management.

They are responsible for the strategic direction and operation of the organization and actively lead the transformation.

The critical role of executives leadership in transformational change is clearly emerging.

There are 3 key roles of executive leadership of such change:- 1.

Envisioning2. Energizing3. Enabling

5. Continuous learning and change. Transformational change requires considerable

innovation and learning.Organizational members must learn how to enact

the new behaviors required to implement new strategy direction.

Interventions

1. Culture Change Culture change is the most common form of

organization transformation. The number of culture change interventions has grown accordingly.

Org. culture is also the focus of growing research and protecting these implied rights.

Interventions cont…

2. Self-Designing organizations A growing number of researchers and

practitioners have called for self-designing organizations that have built-in capacity to transform themselves to achieve high performance in today’s competitive and changing environment.

Demand of transformation

al change

Application stage

Self-Designing

Organization

a) Demand of transformational change There are 5 requirements for organizational

transformation:-i. Systematic changeii. Dynamic and iterativeiii. Organizational learningiv. Multiple stakeholdersv. Multiple level of the organization

b) Application Stages

Laying the foundation

Designing

Implement and Assessing

3. Organization learning and knowledge management

The 3rd organizational transformation intervention is aimed at helping organizations develop ad use knowledge to change and improve themselves continually.

It includes 2 interrelated change processes:-

Processes

Knowledge manageme

ntOrganization learning