Stanford Business Books,pages.
Historic forces have converged to fundamentally reshape thescope, strategies, and structures of large, multi-business enterprises.
Ihe Organization of the Future: TUSHMANPoised on the eve of the next century, we are witnessing a profound transformation in the very nature of our business organizations.
Historic forces have converged to fundamentally reshape the scope, strategies, and structures of large, multi-business enterprises.
Driven by new competitive demands and fueled by an abundance of capital, companies have massively rearranged their portfolios, adding and discarding businesses to sharpen their strategic focus. Those discreet and dramatic portfolio plays, characterized by the high-profile mergers and acquisitions of the past three years, have provided a constant flow of front page news.
But beyond the headlines lies a more subtle story, one with greater longterm significance than the acquisitive appetites of auto makers and telecom giants. Heading into the new century, the most important business development is the pursuit of competitive advantage in an uncertain world through new approaches to organization design.
These new approaches should lead those of us concerned with the theory and practice of organizational design to reconsider thoseideas still grounded in the post-War, preIntemet world that lasted through the s. As this remarkable decade draws to a close, it's appropriate to reflect on the state of organization design and to distill those timeless ideas that will guide us in designing the effective organization of the future.
Our purpose here is first to present our perspectives on the most relevant lessons of organization design. We'll then examine the challenges of the new environment and their implications for tomorrow's organizations.
Next, we'll identify six new strategic imperatives that flow from this reshaped environment. We'll conclude by proposing a set of organizational challenges that encompass the most critical design issues for the organization of the future.
In his personal consulting work, he works primarily in the areas of large-scale organization change, executive leadership, organization design, and senior team development. He has specialized in consulting at the CEO level of major corporations.
Nadler has worked with the most senior levels of management over long periods of time on planned organizational changes in the financial services, information technology, and manufacturing sectors. His clients include Corning, Xerox and Lucent Technologies.
Building on the research of the s and s and the experience of the s, the notion of the "organization as machine" gave way to a more subtle perspective on the social and technical aspects of the organization.
Much of our contemporary thinking can be traced to the landmark work Organization and Environment by Lawrence and Lorsch,which introduced several profound ideas.
The first was "contingency theory"the notion that organizations are most effective when their design characteristics match their environment.
The second major idea flowed from the first; if two units of the same organization operate in different environments, each should take on different characteristics. That creates a dual demand for both "differentiation" and "integration," or the capacity to link different units within the same organization.
The twin principles of "integration and differentiation" are more relevant than ever, given the complexity of modern organizations. The new challenge is to effectively manage dramatically different businesses that overlap or even compete against one another within a single, strategically focused enterprise.
What's more, there will be a growing need for integration patternsjoint ventures, alliances, etc. We believe there are four core lessons of organization design that will retain their relevance in the coming decade: The environment drives the strategic architecture of the enterprise, either through anticipation of, or reaction to, major changes in the marketplace.
Every industry evolves through cycles of incremental change punctuated by turbulent periods of disequilibrium that call for radical or discontinuous change.Models of Organizational Change and Transformation Tushman—O’Reilly Congruence Model & IBM This paper seeks to analyze the changes that IBM Chief Executive Samuel J.
Palmisano began implementing at IBM in by utilizing the Tushman-O’Reilly Congruence Model for organizational diagnosis. Dynamic Capability Seen through a Duality–Paradox Lens: A Case of Radical Innovation at Microsoft (O’Reilly & Tushman, ).
Types of Organization Learning. And, on the outside, he was pursuing an intense business courtship of Big Daddy IBM as a very high priority (Edstrom & Eller, ). You just clipped your first slide! Clipping is a handy way to collect important slides you want to go back to later.
Now customize the name of a clipboard to store your clips. MGT Case 2 (Essay Sample) Analyze the changes that Palmisano began implementing at IBM in using the Tushman-O-Reilly Congruence Model In your analysis, you should look for data in the case study related to: • Strategic Choices and the Critical Tasks and Work Flows/Processes related to those choices (see Figure on .
IBM case study: An analysis of the changes that Palmisano began implementing at IBM in using the Tushman-O-Reilly Congruence Model According to the Tushman-O-Reilly Congruence Model, for an organization to "successfully transform for the next generation, its four key organizational building blocks of critical tasks, people, .
And while that may sound purely theoretical, O'Reilly and his coauthors, Bruce Harreld and Michael L. Tushman, both of the Harvard Business School, analyzed how IBM, which looked headed for extinction in the s, learned to adapt and regained its place as a dominant competitor in the technology industry.