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Organizational Transformation

We hear and read a lot these days about “disruptive” leadership, best described as an extreme form of the transformational style we read about in the background readings. A fairly typical experience is that a company’s Board of Directors appoints a new CEO with limited experience in its industry, but an excellent track record in another industry. The vision behind that appointment is that this “organizational athlete” can bring some lessons from his/her previous employment experience to the company and, in a relatively short time, mobilize major changes in culture, processes, and operations that result in significant improvements in performance and, perhaps, a repositioning of the company in terms of its customer and public perspectives. Layoffs and some senior executive departures and replacements are also often elements of the transformation recipe.

However, pulling off that disruption successfully is never easy and frequently fails. A contemporary example of disruption is the 3G group in Brazil that has acquired Anheuser-Bush, Kraft Foods, and Heinz, replacing senior executives and dramatically reducing costs by closing less efficient processing plants and cutting back on travel expense. The jury is still out on whether and how this effort will pan out.

Perhaps you have been involved in a successful or failed transformation. Use that experience in addressing these questions. Otherwise, some internet research on the concept of “organizational transformation” and “disruptive leadership” should generate other examples.

• What are some of the barriers to organizational transformation?

• What does it take to either overcome or minimize the effects of these barriers?

• Can you think of successes or failures in efforts to transform a company?

Discussion expectations are for students to post each week: a response to the questions posed and at least two or three substantive replies to the contributions of fellow students or the class instructor. “Substantive” implies more than simple agreement or other one-liners: explain your position, offer an example, and provide at least some external referencing in each module. The best examples of discussion contributions provide some depth – compose a coherent paragraph or two, offer some originality, and demonstrate an understanding of the concepts covered in the module. Proofread what you have written before publishing it.

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