In this soft approach to change, the goal is to develop corporate culture and human capability through individual and organizational learningthe process of changing, obtaining feedback, reflecting, and making further changes.
It is driven from the top with extensive help from consultants and financial incentives.
When Al Dunlap assumed leadership of Scott Paper in May 1994, he immediately fired 11,000 employees and sold off several businesses.But even that is not enough.To focus executives single-mindedly on shareholder interests, he used financial incentives, mainly stock options.These entrepreneurs emphasize shaping the firms strategy, structure, and systems to build a quick, strong market presence.This leads, we argue, to maximization of the costs and minimization of the potential benefits of each theory.By 1999, the company windows 10 usb bootable had multiplied shareholder value eightfold.Change is emergent, less planned and programmatic.Employee compensation, for example, is linked with financial incentives, mainly stock options.Historically, the study of change has been restricted to mature, large companies that needed to reverse their competitive declines.Resolving the Tension between Theories E and O of Change / Breaking the Code of Change.Harvard Business School Press, Boston, 2000.
For instance, when William.
Norman was the first to credit Leighton with having helped to create emotional commitment to the new asda.As he said in one of his speeches: Shareholders are the number one constituency.Purpose and Means, theory E, theory O, leadership.For more than 40 years now, weve been studying the nature of corporate change.The organizations ability to learn from its experiences is a legitimate yardstick of corporate success.