Drucker School – Organisational Change Leadership

Creative destruction. The proces whereby outdated business models are replaced by newer ones. Avoid being replaced in the market by making your organisation a ‘change leader’.

“…unless an organization sees that its task is to lead change, that organization—whether a business, a university, or a hospital—will not survive. In a period of rapid structural change the only organizations that survive are the ‘change leaders.’”
—Peter F. Drucker

Change management is a bit like being able to work in two places at once: the present and the future. Managing in two time periods. ‘The ambidextrous organisation’.

Drucker recommends that at least 10% – 20% of an executive’s time and resources be spent on the future. ‘Unerstanding and predicting market and customer changes and developing a clear, motivating vision’. Sometimes this can conflict with the demands of investors for more focus on profits in this quarter for example. ‘Willingness to be misunderstood’.

“…every organization has to build the management of change into its very structure.”
—Peter F. Drucker

Best practises for making our organisations change leaders:

  1. Develop a compelling vision
  2. Commit to innovation
  3. Focus on customers and the market
  4. Dynamically manage organisational capabilities and resources
  5. Practise abandonment
  6. Create a culture of change

It’s best to have people on board with the changes you’re making. Because they’re in control of how hard and how well they work.

Change comes from outside. Transition happens inside.

  • Manage the process of making the changes (new procedures and structures etc)
  • Help people transition to the new model

According to John Kotter there are eight steps to organisational change:

  1. Estabish a sense of urgency
  2. Create a guiding coalition
  3. Develop a clear shared vision
  4. Communicate the vision
  5. Empower people to act on the vision
  6. Create short-term wins
  7. Consolidate and build on the gains
  8. Institutionalise the gains

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