Copyright Interactive Design Labs 2005 - 2017
Factors Contributing to Success/Failure of Organizational Change
Factors that contribute to the success/failure of organizational change can be grouped into categories with respect to their influence on success/failure of strategy development, and success/failure of strategy execution. The factors contributing to the success/failure of Strategy execution and organizational change include:
Complexity is the state of a system having many parts connected or related to each other. This is one of the biggest barriers to successful strategy execution. Complexity can be classified into Technical Complexity and Social Complexity.
This involves the presence of high levels of uncertainty and decision complexity.
The sources of Social Complexity may derive from:
Poor Leadership Style
A bad strategy reflects an organization's failure to face the problem. A strategy is a way through a difficulty; an approach to overcoming an obstacle; a response to a challenge.
Strategy execution involves strategic alignment and coordination organizational behavior that drive actionable decisions. The strategic objectives and goals are cascaded to of cascaded to the appropriate actors in the organization with the capability and capacity to perform the actions that accomplish the requisite goals and objectives. This is essentially strategy alignment - linking strategy to actions at every level in the organization.
Bad Strategic Decisions
Strategic decisions are the product (outputs) of strategic decision-making processes. The decision's outcomes are usually contingent on the behavior of other actors (individuals or organizations) affected by the decision. These recursive relationships between decisions, decision outcomes, and effects of other actors' behavior make strategic decisions messier and more complex than operations decisions. Strategic decisions are long-term in their impact; they affect and change the direction of the whole business/organization. Strategic decisions are among the main means through which management choices are actually realized. They are difficult or expensive to reverse because they substantially alter (and irrevocably so in the short run) the relationships between the decision makers' organization and customers, competitors, etc.
Strategic decision-making processes can be identified by the strategic 'issues', events or factors that trigger them. These triggers may include observed issues such as decrease in sales or sales growth, a new product entry by competitor(s); and events such as request for action from executive management, or simply a regular planning cycle. Examples of strategic decisions include:
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