By Edward E Lawler; Christopher G Worley
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Extra resources for Built to change : how to achieve sustained organizational effectiveness
The financial restructurings of the new CEO mortgaged the future by reducing new product development and throttling innovation. Not surprisingly, performance began to decline, and the once very “successful” CEO was moved out. He had failed to build an organization that fit the changing business environment. The Built-to-Change Model To explain the complexities of organization effectiveness over time, we have created the Built-to-Change Model. 1, consists of Environmental Scenarios and three primary organizational processes—Strategizing, Creating Value, and Designing—spinning around the organization’s Identity.
At fifty years of age, Al was depressed. Although he believed he had many years of productive work left in him, there were few companies that needed his particular mix of skills. After six months of reflection—he called it hell—Al tapped his unused GI Bill funds to go back to school. He studied accounting, but more important, he got hooked on computers and learned to use CAD-CAM software. Developing a new competency was a breakthrough. Through a temporary agency, Al found a job with an aerospace firm and turned that job into a permanent position.
Why was this? Basically, Honeywell’s decision processes were designed to support its major businesses (thermostats, airplane guidance systems) at that time. Most of these businesses were relatively slow moving and did not require high-speed decision making and agile behavior. In contrast, the computer business was changing almost daily and needed to be able to respond quickly to 16 | Built to Change competitors’ moves, technology developments, and environmental changes. The required speed of decision making simply did not fit with Honeywell’s kind of internal decision processes or with the elaborate justifications that were required for capital investment and product development.