Strategic Management: Formulation and Implementation

Forces For Change

There are various reasons why organizations need to change their structures and processes. This section is largely based on Rosabeth Moss Kanter, Barry A. Stein, and Todd D. Jick, The Challenge of Organizational Change: How Companies Experience IT and Leaders Guide It. Forces for change exist both in the external environment and within the organization.

External forces originate in all environmental sectors, including customers, competitors, technology, economic, government regulation, and international. Internal forces arise from internal activities and decisions. Some of internal reasons for change are: new strategy and objectives, acquisition of new equipment and technology, unionization, to facilitate innovation, to meet changes in employees' needs.

Three clusters of forces create motion that triggers change:

  1. First is the relationships between organizations and their environments.
  2. The second is organic, "growth" through the life cycle.
  3. The third is political, the constant struggle for power.