Read and study the business model shown below.
- Evaluate which of the 4 conditions your company usually operates in as an approach to managing its future
- Decide which of the 4 conditions the company is likely to encounter over the next 5 years
- Based on that assessment, if you were an executive in your organization, describe 5 specific actions you would take to lead the business through that condition
This submission should be 3-5 pages
Business Continuity and Discontinuous Change – Nadler & Tushman
A company that adopts a ‘tuning’ approach will perform continuous or incremental changes in
anticipation of environmental demands. There is generally no immediate requirement for change, it is more of a position-maintenance strategy, and is driven through a desire to maintain close congruence between the various sub-systems of the organization and its environment.
Where tuning was change through anticipation of external events, adaptation is change triggered in reaction to external events. The desire for change was not predicted, but change still occurs on
an incremental basis. The situation is generally one of change, or suffer a competitive cost.
Change which is commenced in anticipation of external drivers, but which is discontinuous,
is called reorientation. It usually involves changing the core elements of the company, including identity, values, culture, strategy, and structures. As it is executed in advance of a crisis or any percept of necessity, it can appear to be gradual and to lack exigency. Therefore, a key role of change managers is to create a sense of urgency and to build commitment. An advantage of reorientation is the luxury of time, where changes can be instigated in the peripheral areas of a firm, allowing the gradual building of coalitions, which will help ease the changes throughout the organization.
Business leaders who have the foresight and skills required to succeed with reorientation are a
rarity. Generally, the need for change is not recognized until a crisis is imminent or actual. Re-creations are thus much more common than would be desired. Re-creations occur in reaction to a desperate situation, where time and resources are strained. Change will be frenetic, all
encompassing, and irreversible, with minimal chance of pre-change long-term survival. The firm will need to literally re-create itself with a fast, focused and furious effort, usually over just a few months.