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to create opportunities for conflict； leadership and the
prospects of cohesion。 These are also popular as elements in the management
selection process。
Preparing for development
To make sure you get the best out of investment in development； follow
these guidelines：
。 Introduce a routine that ensures all employees a。。ending training are
briefed at least a week beforehand on what to expect and what is expected
of them。
。 Ensure that all employees discuss with their manager or supervisor
what they got out of the training programme – in particular； did it meet
both their expectations。 This should take place no later than a week
a。。er the programme。
。 Managers should check within a month and then again at regular intervals
to see whether skills have been improved； and that those skills are
being put into practice。
。 Evaluate the costs and benefits of your training and development plans；
arriving at financial ratio such as return on investment； and use this
information to help set next year’s training budget。
158 The Thirty…Day MBA
MANAGING CHANGE
The story told in business schools to illustrate the dangers of ignoring the
need for change is that of the hypothetical frog dropped into a pot of boiling
water。 The immediate impact of a radically different environment spurs the
frog into action； leaping out of the pot。 The same frog placed in the same
pot； but where the initial temperature is much lower； will happily allow
itself to be boiled to death； failing to recognize the danger if the process is
slow enough。
The first task of a leader； therefore； is to define an organization’s purpose
and direction。 This inevitably means changing those in response to changing
circumstances。
Why change is necessary
The need for change es from two main directions： either a new impetus
from outside or inside the organization； or from the natural evolution of
the organization itself。
Impetus…driven change
These are the primary sources of the impetus for change that disturb the
equilibrium of an organization：
。 New management： This doesn’t always trigger change but the temptation
to tamper with even the best of organizations is usually too much
for a ‘new broom’。 The person appointed almost invariably will want
to put their stamp on strategy and structure； if all was really so hunkydory；
why appoint them in the first place？
。 petitor behaviour： This can be either new entrants or existing
players changing the dynamics in your markets by peting with
be。。er products； lower prices or smarter operations。
。 Technology： Changes here can hit whole business sectors。 For example；
the advent initially of online DVD services and more recently of
broadband delivery has profoundly changed the environment for the
retail video rental business。
。 Economic； political or legal environment： These include such factors
as： business cycles altering demand levels radically； changes of government
with consequent shi。。s in expenditure and taxation； and regulatory
changes such as those affecting the tobacco industry and its ability
to promote its wares。
Organizational Behaviour 159
Natural evolution
Organizations are in some ways like living organisms and have a natural
progression from birth through childhood； adolescence； adulthood； senility
and death。 Some stages in the process for an organization are easily
recognizable。 All have a start and finish date and though their life span
varies； for businesses at least； the average is around 35 to 38 years。 Some
last much longer； there is a small club for businesses who have been around
for over 250 years。 （Japan’s 1；400…year…old Kongo Gumi may be the oldest
business enterprise； but guns （Bere。。a）； banking （Rothschild） and booze （the
Gekkeikan brewery founded in 1627） also feature strongly （see ‘Business
history’）。）
The phases of growth
Larry Greiner； a Harvard professor； identified the key phases an organization
has to go through in its path to maturity。 （See Figure 4。13。） Churchill
and Lewis （Churchill； N C and Lewis； V L （1983） ‘The Five Stages of Small
Business Growth’； Harvard Business Review； May/June） refined this for small
businesses。
Figure 4。13 The five phases of growth
Source： L E Greiner； Harvard Business Review； July/August 1972
Size of organization
Age of organization
2。 Crisis of
AUTONOMY
1。 Crisis of
LEADERSHIP
3。 Crisis of
CONTROL
4。 Crisis of RED
TAPE
5。 Crisis of ？
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
LARGE
SMALL
YOUNG MATURE
1。 Growth through
CREATIVITY
2。 Growth through
DIRECTION
3。 Growth through
DELEGATION
4。 Growth through
COORDINATION
5。 Growth through
COLLABORATION
160 The Thirty…Day MBA
Each phase of growth calls for a different approach to managing the
organization。 Sometimes strong leadership is required； at others a more
consultative approach is appropriate。 Some phases call for more systems
and procedures； some for more cooperation between staff。 O。。en leaders
believe that taking on another salesperson； a few hundred thousand square
metres of space or another bank loan can solve the problems of growing
up。 This approach is rather like suggesting that the transition from infancy
to adulthood could be acplished by nothing more significant than providing
larger clothes。
Managing the process
Because change is inevitable and unpredictable in its consequences doesn’t
mean that it can’t be managed as a process。 These are the stages in managing
change：
。 Tell them why： Change is be。。er accepted when people are given a pelling
business reason。 Few bankers would question the need for change
a。。er the 2008 debacles at Bear Stearns； SocGen and Northern Rock。
。 Make it manageable： Even when people accept what needs to be done；
the change may just be too big for anyone to handle。 Breaking it down
into manageable bits can help overe this。
。 Take a shared approach： Involve people early； asking them to join you
in managing change； and give key participants some say in shaping
the change right from the start。 This will reduce the feeling that change
is being impos