Change has become something of a buzzword for high-performance firms. 'Change', however, can be difficult and hazardous. Executives may initiate change by acquiring new businesses, divesting under-performing units, and downsizing. In other cases, executives are the focus of change by outside agents. Boards may replace management for poor performance. Firms often become targets for takeover by outside firms. Most change has a common objective - to improve corporate performance and enhance firm competitive advantage. Nevertheless, change can be destabilizing, especially for executives. It is well known that executives leave in droves shortly after an acquisition. Less well known is the fact that executives who join firms acquired several years earlier also leave more quickly than executives in other firms. Organizational change creates conditions that may promote sustained instability in a firm's executive ranks. "Organizational Change" provides executives with an in-depth look at anticipated long-term consequences. It examines why firm performance sometimes falters and why executives often fail to recognize the need for change.
It discusses different types of strategic and organizational change, the destabilizing effects of change, and the root causes of long-term leadership instability that often follows. Finally, it introduces a model of organizational change to help firms identify the unintended consequences of disruptive change on executive leadership stability. Reestablishing executive leadership continuity may play a critical role in restoring top management team effectiveness following organizational change.