Change Management Resources, Processes and Values

Reading about innovation and disruptive change, I found an important point:

Authors Christensen and Overdorf give an overview of how companies fail to meet disruptive change as they don’t make an assessment of the organisation’s capabilities and limitations. They give a framework that helps in such assessment and concluded that “three factors affect what an organisation can and cannot do: its resources, its processes and its values”.

(1)   Resources are the things that managers most instinctively identify when assessing whether their organisations can successfully implement changes. What are your key resources?, both tangible (people, equipment, technologies, cash) and intangible (product designs, information, brands, current relationships with suppliers, distributors and customers).

(2)   Processes include not just manufacturing processes, but those by which product development, procurement, market research, budgeting, planning, employee development and compensation, and resource allocation are accomplished. How do the people who we employ interact, coordinate, communicate and make decisions?

(3)   Values of an organisation are the criteria by which decisions about priorities are made. An organisation’s values are the standards by which employees make prioritisation decisions by which they judge whether an order is attractive or unattractive; whether a customer is more important or less important; whether an idea for a new product is attractive or marginal; and so on.

Read more: Christensen, Clayton M., and Michael Overdorf. “Meeting the Challenge of Disruptive Change.” Harvard Business Review

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