Alternative Change Tactics Incremental Change Radical Change Revolutionary

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Alternative Change Tactics Incremental Change Radical Change Revolutionary Tactics Unnecessary Pain “Fit” Evolutionary “Fit”

Alternative Change Tactics Incremental Change Radical Change Revolutionary Tactics Unnecessary Pain “Fit” Evolutionary “Fit” OK if plenty of time

Change Tactics Multi-organization Multi-processes Single Process Transformational (Radical) Incremental NATURE OF CHANGE FOCUS OF

Change Tactics Multi-organization Multi-processes Single Process Transformational (Radical) Incremental NATURE OF CHANGE FOCUS OF CHANGE Evolutionary SPEED OF CHANGE Revolutionary

Examples of Radical Tactics Analysis/Design Phase - Use of Outsiders Consultants employees with no

Examples of Radical Tactics Analysis/Design Phase - Use of Outsiders Consultants employees with no “old” process knowledge executives from outside - Collocate and isolate the design team Little communication to non-team members - Experiment with new structures Self-managed/empowered teams Teams managing teams

Examples of Radical Tactics Pilot Phase - Co-locate/isolate the pilot team Limited communication to

Examples of Radical Tactics Pilot Phase - Co-locate/isolate the pilot team Limited communication to broader organization - Open a distant, greenfield location Implementation Phase - Firm milestones established for deliverables

Design may be radical but implementation is incremental Reengineering is a DESIGN activity

Design may be radical but implementation is incremental Reengineering is a DESIGN activity

Alternative Change Tactics Design/pilot assuming a clean slate. Revolutionary change tactics. Implement assuming existing

Alternative Change Tactics Design/pilot assuming a clean slate. Revolutionary change tactics. Implement assuming existing state. Evolutionary change tactics.

The Use of Revolutionary and Evolutionary Tactics of Change Energy Employed Revolutionary Tactics Analysis/

The Use of Revolutionary and Evolutionary Tactics of Change Energy Employed Revolutionary Tactics Analysis/ Design Evolutionary Tactics Pilot Implementation PROJECT PHASES Source: Stoddard and Jarvenpaa, 1995

Senior Management Support by Project Phase Recommended situation Typical situation High Low Analysis &

Senior Management Support by Project Phase Recommended situation Typical situation High Low Analysis & Design Pilot Implementation

Communications Recommended situation Typical situation High Comm. Breath and Depth Low Analysis & Design

Communications Recommended situation Typical situation High Comm. Breath and Depth Low Analysis & Design Pilot Implementation

Design can be mandated Implementation must be owned Design Implementation may involve redesign

Design can be mandated Implementation must be owned Design Implementation may involve redesign

Change Levers - Leadership - Employee Involvement - Communication - Need for the Transformation

Change Levers - Leadership - Employee Involvement - Communication - Need for the Transformation - Milestones - Culture/Structure

FOLLOW-UP Jan 2000 Launched Medtronic. com (vertical portal) Partners: Microsoft, IBM, Web. MD Within

FOLLOW-UP Jan 2000 Launched Medtronic. com (vertical portal) Partners: Microsoft, IBM, Web. MD Within 18 months data from anywhere Feb 2000 Created E-business Center to manage its Internet strategy ($230 M in 3 years) Mar 2000 Medtronic, J&J, GE Medical Systems, Baxter, and Abbott announced a global healthcare exchange

THE PRIMARY OBJECTIVES OF THE MEDTRONIC CASE STUDY WERE: 1. The role of CEOs

THE PRIMARY OBJECTIVES OF THE MEDTRONIC CASE STUDY WERE: 1. The role of CEOs in transformation initiatives. 2. The approaches to transformation: analysis, design, and implementation. 3. The value of IT in transforming a company. 4. Successful transformations requires involvement and participation of all levels. 5. Businesses can be transformed, but long-term benefits need to encompass communication systems and the sharing of intellectual assets.