Chapter 10 Change management
1
Survival ( outward‑ looking, flexible) – the external environment plays a significant role
(an open system) in governing company strategy. The company is likely to be driven by
customer demands and will be an innovator. It may have a relatively flat structure.
2
Productivity ( outward‑ looking, ordered) – interfaces with the external environment are
well structured and the company is typically sales‑ driven and is likely to have a hierar‑
chical structure.
3
Human relations ( inward‑ looking, flexible) – this is the organisation as family, with inter‑
personal relations more important than reporting channels, a flatter structure and staff
development, and empowerment is thought of as important by managers.
4
Stability ( inward‑ looking, ordered) – the environment is essentially ignored, with
managers concentrating on internal efficiency and again management is through a hierar‑
chical structure.
Now complete Activity 10.4 to investigate how companies may need to realign their culture
to succeed in digital business.
Activity 10.4
Changing the culture for digital business
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