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Why change programs don't produce change.

M Beer1, R A Eisenstat, B Spector

  • 1Harvard Business School.

Harvard Business Review
|October 6, 1990
PubMed
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Corporate renewal requires a grass-roots approach, not top-down programs. Successful organizational change starts at the periphery, led by general managers focusing on concrete problems.

Area of Science:

  • Organizational Behavior
  • Business Management
  • Strategic Change

Background:

  • Companies face increasing market competition and recognize the need for transformation.
  • Senior management often misunderstands the process of implementing effective organizational change.
  • Traditional approaches assume company-wide programs and structural changes are primary drivers.

Purpose of the Study:

  • To challenge the assumptions that large-scale change programs and formal structural alterations are the most effective methods for corporate renewal.
  • To identify the key factors and processes that lead to successful organizational revitalization.
  • To present an alternative model for initiating and managing corporate change.

Main Methods:

  • A four-year observational study of organizational change initiatives across six large corporations.

Related Experiment Videos

  • Analysis of change processes initiated and managed by general managers at the plant or divisional level.
  • Examination of the role of ad hoc organizational arrangements in solving business problems.

    • Main Results:

    • Company-wide change programs are often significant obstacles to successful revitalization.
    • Formal structures and systems are less critical to initiate change than previously assumed.
    • Successful change originates at the periphery, driven by general managers addressing specific issues.
    • Ad hoc arrangements focused on concrete problems are more effective than abstract initiatives.

    Conclusions:

    • Effective corporate renewal is best achieved through a grass-roots approach, starting with local initiatives.
    • General managers play a crucial role in leading change by creating practical solutions to immediate business challenges.
    • A six-step process, termed the 'critical path,' facilitates successful change without waiting for senior management directives.