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    Trans Organizational Change

    Uploaded by

    Donato Galila

    Copyright:

    © All Rights Reserved
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    Trans Organizational Change

    Uploaded by

    Donato Galila
    250 views3 pages

    Copyright

    © © All Rights Reserved

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    DOCX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    250 views3 pages

    Trans Organizational Change

    Uploaded by

    Donato Galila

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    CHAPTER 15

    STRATEGIC CHANGE INTERVENTION


    ©Transorganizational Change
    Presented by: Donato P. Galila
    Learning Objectives
     Explain the rationale and logic behind organization collaboration.
     Describe and apply organization development (OD) interventions that enable mergers
    and acquisitions.
     Discuss and apply the OD process to alliance formation and development.
     Describe the process of network formation and trans-organizational development as well
    as how network change.
    Trans-organizational Rationale
     Trans-organizational strategies allow organizations to perform tasks that are too costly
    and complicated for single organizations to perform.
     Goods and services are exchanged between organizations and transactions occur.
     Trans-organizational strategies work best when transactions occur frequently and are
    well understood.
    Trans-organizational Systems
    Members maintain their separate organizational identities and goals
    Tend to be under organized and member organizations are loosely coupled
    Different from mergers and acquisitions
    Network interventions may be appropriate
    Mergers and Acquisitions
    o Merger – the integration of two previously independent organizations into a completely
    new organization
    o Acquisition – the purchase of one organization by another for integration into the
    acquiring organization
    o Distinct from trans-organizational systems, such as alliances and networks, because at
    least one of the organizations ceases to exist
    Mergers and Acquisition Rationale

     Diversification
     Vertical integration
     Gaining access to global markets, technology, or other resources
     Achieving operational efficiencies, improved innovation, or resource sharing
    Merger and Acquisition Application Stage
    Pre-combination Phase
     Search for and select candidate
     Create and M&A team
     Establish the business case and perform a due diligence assessment
     Develop merger integration plans

    Legal Combination Phase


     The two organizations settle on the terms of the deal, gain approval from
    regulatory agencies and shareholders, and file appropriate legal
    documents

    Operational Combination Phase


     Implementing the operational, technical and cultural integration activities
    Strategic Alliance Interventions
     When two organizations formally agree to pursue a set of goals
     There is sharing of resources, intellectual property, people, capital, technology,
    capabilities or physical assets
     Common alliances are licensing agreements, franchises, long-term contracts, and joint
    ventures
    Strategic Alliance Application Stages
    Alliance Strategy Formulation
     Clarify the business strategy and why an alliance is needed
    Partner Selection
     Leverage similarities and differences to create competitive advantage
    Alliance Structuring and Start-up
     Build and leverage trust in the relationship
    Alliance Operation and Adjustment
    Network Interventions
     Involves three or more companies joined together for a common purpose
     Each organization in the network has goals related to the network as well as those
    focused on self-interest
     Characterized by two types of change: creating the initial network ( trans-organizational
    development) and managing change within in established network
    Application Stages for Trans-organizational Development

    Identification Convention Organization Evaluation


    How to organize for
    Who should belong task performance? How is the TS
    to the trans- performing?
    organizational Should a TS be -Communication
    systems (TS)? created? -Performance
    -Leadership outcomes
    -Relevant skills, -Costs and benefits
    knowledge, and -Policies and -Quality of
    resources -Task perceptions procedures interaction

    -Key stakeholders -Member satisfaction

    Managing Network Change


     Create instability in the network
     Manage the tipping point
    - The Law of the Few: Sales people, Mavens, Connectors
    - Stickiness
    - The power of Context
     Rely self-organization

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