People change, organisations change, whole industries change. This fact can be clearly observed in all aspects of human life. Only a few weeks ago the author communicated with an employee of Thomas Cook, one of the largest tour operators of the world, and expressed his bewilderment about the absence of the destinations Australia and New Zealand in the new catalogue of the product management department he used to work at. The answer simply was that another department would now be responsible for these destinations. Actually these were not the only news. The team has been relocated to another floor, has been merged with another team, and by the way has a new boss. Moreover, only days ago the author read the news from a relaunch of Air Marin as no-frills tour operating brand of Thomas Cook. This brand did already exist until 2003 and was then abolished to strengthen the Thomas Cook brand Neckermann Preisknüller.
These are only small changes within a large company, but they tell the tale of a larger process taking place behind the scenes, a process of change, of strategic renewal. But what is strategic renewal and why are so many companies are involved in change processes despite the estimation that about 70% of all renewal processes do fail.
Table of Contents
1. Introduction
2. Strategic Renewal
2.1 Reasons for Strategic Renewal
2.2 Types and Areas of Strategic Renewal
3. Pace of Change
3.1 Overview
3.2 Continuous Renewal
3.2.1 Definition
3.2.2 Characteristics
3.2.3 Conditions
3.2.4 Kaizen
3.3 Discontinuous Renewal
3.3.1 Definition & Classification
3.3.2 Characteristics & Measures
3.3.3 Conditions
3.3.4 Reengineering
3.4 Alternatives Approaches to Strategic Renewal
4. Conclusion
Objectives and Key Themes
This work examines the concept of strategic renewal within organizations, focusing on the dichotomy between continuous, incremental change and discontinuous, radical transformation. The primary objective is to analyze the factors that determine the appropriate pace of renewal and to understand how organizations can balance stability with the necessity for change in dynamic environments.
- Theoretical frameworks of strategic renewal (corporate transformation vs. organizational learning).
- Continuous renewal: Characteristics, preconditions, and the Japanese Kaizen philosophy.
- Discontinuous renewal: Characteristics, reengineering, and radical organizational redesign.
- Comparative analysis of change management approaches regarding pace, scope, and risk.
- Strategic recommendations for managing the synthesis of change and continuity.
Excerpt from the Book
3.2.4 Kaizen
Observing organisations globally it becomes apparent that many of the successful applications of continuous change take place in the Asian economies, predominantly in Japan. The reason for this can be found in the more pronounced long-term orientation in the respective culture, compared to western cultures. This leads to the conclusion that companies there fulfil the most important requirements and conditions for successful first-order change, which are a learning corporate culture and according managing skills.
Comparing Japanese and Western approaches to strategic renewal one thing becomes apparent: Different values. Whereas Western managers often act according to the guideline ‘manage change or else change management’, which already implies a rather impatient and radical point of view towards change, an old Japanese saying is ‘If a man has not been seen for three days, his friends should take a good look at him to see what changes have befallen him’, literately describing change as an ongoing part of daily life, not as a necessary task (Imai, 1986, in De Wit & Meyer, 2004). Therefore the different approaches can be distinguished as ‘managing the task change’ versus ‘living change’. This philosophy is ‘Kaizen’.
Chapter Summary
1. Introduction: Discusses the ubiquity of organizational change and introduces strategic renewal as a necessary, yet challenging, process for company survival.
2. Strategic Renewal: Explores the reasons for renewal as a reaction to environmental forces and defines the two primary perspectives: corporate transformation and organizational learning.
3. Pace of Change: Analyzes the debate between revolutionary, discontinuous change and evolutionary, incremental change.
3.1 Overview: Contrasts early theories of rapid turnaround with newer approaches focusing on long-term incremental development.
3.2 Continuous Renewal: Details incremental change processes aimed at maintaining stability and adaptive capacity.
3.2.1 Definition: Defines first-order change as adjustments to systems and processes without altering core identity.
3.2.2 Characteristics: Highlights the evolutionary nature, flexibility, and reliance on staff-level participation.
3.2.3 Conditions: Emphasizes the need for individual initiative, supportive culture, and specific managerial skills.
3.2.4 Kaizen: Explains the Japanese philosophy of ongoing, collective improvement as a model for continuous renewal.
3.3 Discontinuous Renewal: Explores radical, transformational change in hypercompetitive environments.
3.3.1 Definition & Classification: Categorizes second-order change as fundamental, rapid, and often reactive transformation.
3.3.2 Characteristics & Measures: Describes the disruptive nature of radical change and its dependence on top-management initiative.
3.3.3 Conditions: Outlines when rapid change is necessary, such as industry discontinuities and shifting product life cycles.
3.3.4 Reengineering: Evaluates the disruptive approach of radical process redesign to achieve dramatic performance improvements.
3.4 Alternatives Approaches to Strategic Renewal: Introduces intermediate concepts like midrange organizational change, punctuated equilibrium, and robust transformation.
4. Conclusion: Summarizes findings and recommends a balanced approach that synthesizes change and continuity for organizational growth.
Keywords
Strategic Renewal, Change Management, Continuous Renewal, Discontinuous Renewal, First-order Change, Second-order Change, Corporate Transformation, Kaizen, Reengineering, Organizational Learning, Pace of Change, Competitive Advantage, Environmental Change, Innovation, Organizational Development
Frequently Asked Questions
What is the core focus of this work?
The work investigates the strategic renewal of organizations, specifically exploring the relationship between the pace, scope, and methods of change processes.
What are the two primary types of strategic renewal discussed?
The author distinguishes between continuous (first-order) renewal, which is incremental and evolutionary, and discontinuous (second-order) renewal, which is radical and revolutionary.
What is the main objective of the research?
The objective is to analyze how organizations can effectively adapt to changing environments by choosing the right speed and method for their specific circumstances.
Which scientific methods or concepts are primarily used?
The work relies on established management literature, including the PESTEL and Five Forces models, concepts like Kaizen and Reengineering, and theories of organizational behavior and learning.
What characterizes the main body of the text?
The main body provides a detailed theoretical comparison of incremental vs. radical change, including conditions for success, necessary organizational cultures, and practical examples like Thomas Cook and General Motors.
Which keywords best characterize the work?
Strategic Renewal, Continuous Renewal, Discontinuous Renewal, Change Management, Kaizen, and Reengineering are central to the study.
How does the Kaizen philosophy differ from Western management?
Kaizen promotes ongoing, incremental improvements involving everyone, whereas Western management often favors "managing the task" through radical, top-down bursts of innovation.
Why is the "70% failure rate" mentioned?
The author cites this statistic to illustrate the high risk associated with renewal processes and to emphasize the importance of choosing the correct renewal approach to avoid failure.
What is the author's recommended "middle way"?
The author suggests that companies should respond to drastic external changes with rapid, near-revolutionary methods when necessary, while simultaneously fostering a culture of continuous improvement for long-term stability.
- Arbeit zitieren
- B.A. Jens Kaulbars (Autor:in), 2010, Strategic Renewal & The Speed of Change, München, GRIN Verlag, https://www.hausarbeiten.de/document/183140
