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Welcome to CEO CHANGE Magazine- August 2008 Volume 3
Economies of Change PDF Print E-mail
Economies of Change
Michelle M. Griffin, PhD Candidate
CEO CHANGE Journal, March 2008, Vol 1

The "Economies of Change" theory is based on the classic S curve. The S curves for business shows the effectiveness of an organizations strategy of profitability. The new strategy starts, takes time to implement as an organization, and comes to market with new technology that the market wishes to buy.

The organization takes off. At the same time, the more successful the products and strategies the less likely the organization is willing to change as it grows. This accounts for the rapid growth in profitability and the low propensity to change as profitability improves, as depicted in figure 2. This also follows Van de Van and Poole (1995) life cycle theory where every event has a sequence of start-up, grow, harvest, terminate and start-up or reinvention. In the S-Curve model the change tends to be more episodic. Episodic change occurs infrequent, discontinuous, and intentional (Weick and Quinn, 1999).

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Why are Worker Bees laid off but not the Directors and Vice Presidents? PDF Print E-mail
Why are Worker Bees laid off but not the Directors or Vice Presidents
Michelle M. Griffin, PhD Candidate
CEO CHANGE Journal, March 2008, Vol 1
So most organizations, just came through another round of layoffs during the last quarter. Some were bloody; some layoffs were just a reduction in redundant staff. But, I am always amazed at how most organizations continually go after the Indians of the organizations, rather than the Chiefs.

I know why, it is because the worker bees are easy, they don’t complain. They accept their fate in many instances and take their one week for every year and go away silently. But Directors and Vice Presidents are different; these are smarter individuals many times with MBA’s from high powered schools. Even though we really don’t know what they do all day. Even though they don’t have any employees underneath them. We decide to stay top heavy, and continue to lose profitability because we do not tackle the hard issue of the company. Management and Executives!!!!!

Last time I checked, you need the worker bees to actually do the work.

Last time I checked, when a person is promoted to Director or Vice President the arrogance factor kicks in and they cannot do menial tasks any longer.

What happen to the days where a Director had 10 to 15 direct reports and roughly 100 to 200 indirect. Oh yeah, the span of control we had to decrease. Why because the people in Director or Vice President positions could not lead. Therefore we created new positions, and split departments up in order to make them more successful. Guess what looking at the state of most organizations, decreasing span of control did not work. So now, you have a lot of highly paid Directors and Vice Presidents who are dragging the organization down. So on the next round of layoffs, re-read the section on Inertia. Decide to be a Leopard rather than an Elephant. Because you know what eventually- happens to Elephants they go off and die!!!!!!!

 
What does the S Curve have to do with me? PDF Print E-mail
What does the S Curve have to do with me?
Michelle M. Griffin, PhD Candidate
CEO CHANGE Journal, March 2008, Vol 1

There is an old wise tale about two hikers who are asleep in the woods and are awakened suddenly by a tiger around their tent. One of the hikers began to put his sneakers on and the other hikers ask "Why are you doing this?" The other hiker responds "To out run the tiger". The first hiker comes back with "You cannot out run a tiger". The other hiker replies "I don’t! I just need to outrun you".

The overall issue is that financial decline has become increasingly important. There is more and more evidence that traditional turnarounds efforts result in failure far more often than success (Altman, 1983; Nystrom & Starbuck, 1984; Pearce and Robbins, 1993). There is also increased evidence of that organization leaders undertake change and persist with failing courses of action. This is typically due by organization leaders’ unwillingness to admit to their chosen course of action is not working (Brockner, 1992).

The S-curve theory (Abernathy and Utterback 1978) has become a centerpiece in thinking on product development, as depicted above. It represents an inductively derived theory of the potential for product improvement cycles and their reinvention.

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What is this thing called INERTIA PDF Print E-mail
What is this thing called INERTIA
Michelle M. Griffin, PhD Candidate
CEO CHANGE Journal, March 2008, Vol 1
Hey, you are a new CEO. How wonderful is that. The headhunters found you and the Board loved you. Now what, do you do the traditional CEO dance and make a statement., "I am about understanding the business for the first 90 days after that I will visit key customers in order to understand their needs".

Well that is great, but if you want to live longer than 3 years, inertia better be what you deal with first especially if the board brought you in if profitability was down. I can site numerous references of CEO’s coming into an organization, stating the 90 day rule and then at the end of 90 days or 6 months they have a laid off. That’s right go for the short term gain, layoff people rather than fixing revenue or inertia of the organization.

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There once was a Woman who was afraid to change PDF Print E-mail
There once was a Woman who was afraid to change.
Michelle M. Griffin, PhD Candidate
CEO CHANGE Journal, March 2008, Vol 1

There once was a woman, I knew who was an Executive Secretary. She was very smart. Her boss, knew he was retiring and offered her a very nice promotion making twice the money she currently made and a nice title which she deserved. The woman did not know her boss was leaving. She turned down the offer. Guess what she is today? This is a true story. This is a door which closed, and will never open again. Her decision not to change, cost her a spot to grow and shine. But her being afraid of change, left her in her current position and disgruntled. Opportunities many times only come along once. When the door opens, even if the room is dark, sometimes it is better to take the risk then no risk at all

Last Updated ( Sunday, 09 March 2008 00:42 )
 
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