Organizational change is both the process and "product" (output) of strategic decision making process. It involves the transformation and evolution of organization system elements (e.g., operating system components such as competencies and capabilities, policies and procedures that define institutional arrangements, organization structures, human systems growth, etc.) in order to better respond to and adapt to changes in its environment including opportunities, threats, and strategic issues).
Successful organizational change is driven by successful strategy development (formulation and implementation) and execution in response to identified strategic issues and diagnosed underlying problems. Organizational change not linked to a strategy that address well defined problems has a high likelihood of failure. The following are some logical steps that can improve an organization's chances of successfully implementation organizational change:
There a myriad of factors that influence the success/failure of organizational change similar to those factors that influence strategy implementation and execution failure/success. All these factors are interdependent and influence each other as well as organizational change implementation success/failure to varying degrees. Because they are interdependent and their influences are non-deterministic it is typically very difficult for managers to comprehend their contribution to organizational change success or failure. If an organization fails to pay proper attention to one of them, it can result in organizational change failure, therefore we need a systemic approach to understanding the influences of these factors.
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