Strategic Management: Formulation and Implementation

The Three Kinds Of Movement

The motion of the organization as a whole as it relates to motion in its environment change that is macroevolutionary, historical and typically related to cluster or whole industries.

The motion of the parts of the organization in relation to one another as the organization grows, ages, and progresses through its life cycle change that is microevolutionary, developmental, and typically related to its size or shape, resulting in coordination issues.

The jockeying for power and struggle for control among individuals and groups with a stake in the organization to make decisions or enjoy benefits as an expression of their own interests change that focuses on political dimensions and involves revolutionary activity.

Three Basic Forms Of Change

These three kinds of movement help distinguish three basic forms of change:

Identity changes
These changes are related to macroevolutionary forces, to the motion in the environment and the organization's own capacity to endure over time as a factor in that environment. Organizations can change their relationships to their environments by restructuring or redefining their identity and boundaries through mergers, acquisitions, divestures, or alliances and partnerships. The most extreme version of identity change is when an organization becomes something entirely different (in its businesses, products, ownership, and so on).
Coordination changes
These kinds of changes relate to microevolutionary dynamics. Organizations can change the ways in which they operate, the ways people and unit relate to each other, corresponding to their organic development over time, through changes in internal coordination their culture and structure.
Changes in control
Changes in control that stress the political dimension, who is in the dominant coalition, or which interests or set of interests predominates, who owns and governs the organization. This leads to makeover through takeover or other changes triggered by shifts in ownership or governance.