Breaking the Code of Change [Hardcover]

Michael Beer (Editor), Nitin Nohria (Editor), O of Change By Michael Beer (Author), Nitin Nohria (Author), Resolving the Tension between Theory E (Author)

Book Description

Series: Colloquia S. | Publication Date: October 2000

Organizational change may well be the most oft-repeated and widely embraced term in all of corporate America-but it is also the least understood. The proof is in the numbers: nearly two-thirds of all change efforts fail, and they carry with them huge human and economic tolls. Lacking any overarching paradigm for change, executives of large, underperforming organizations have been left with little guidance in how to choose the strategies that will lead them to sustained success. In "Breaking the Code of Change", editors Michael Beer and Nitin Nohria provide a crucial starting point on the journey toward unlocking our understanding of organizational change. The book is based on a dynamic debate attended by the leading lights in the field-including scholars, consultants, and CEOs who have led successful transformations-and presents a series of articles, written by these experts, that collectively address the question: how can change be managed effectively? Beer and Nohria organize the book around two dominant, yet opposing, theories of change-one based on the creation of economic value (Theory E), and the other on building organizational capabilities for the long haul (Theory O). Structured in an unusual and engaging point-counterpoint style, the book enlists the reader directly in the debate, providing a comprehensive overview of the strengths and weaknesses of each theory along every dimension of the change process-from motivation to leadership to compensation issues. The editors argue that the key to solving the paradox of change lies not in choosing between the two processes, but in integrating them. They identify the crucial considerations leaders must make in selecting strategies that satisfy shareholders and develop lasting organizational capabilities. With a groundbreaking conceptual framework applicable to established corporations and small organizations alike, "Breaking the Code of Change" is a unique and authoritative contribution to academic research and management practice on the process of organizational change. Michael Beer is the Cahners-Rabb Professor of Business Administration at Harvard Business School. Nitin Nohria is the Richard P. Chapman Professor of Business Administration at Harvard Business School.

Editorial Reviews

From Library Journal

Throughout corporate America, organizational change has become one of the most embraced, yet perhaps the least understood, of all the hot-button issues. Editors Beer and Nohria (Harvard Business Sch.) present a keenly written summary of the findings from their August 1998 conference on change, which featured a diverse group of academics, consultants, and CEOs who have researched, enabled, or led successful corporate-change transformations. The book is organized around debates attended by the conference's "change masters," and the editors present what they perceive as the two main organizational change models in practice today: Theory E (creation of economic value) and Theory O (development of organizational capability). Chapters reveal opposing debates on the purpose of change, leading the change process, and the focus of change, among other topics. A synthesis by a conference moderator follows each debate and is in turn followed by a conference critique and an epilog by the authors indicating what you already could guess: they have not yet broken the "code of change" but have helped better understand organizational change and identify key strategic considerations. Highly recommended for university libraries supporting business curricula.DDale Farris, Groves, TX
Copyright 2000 Reed Business Information, Inc.

From Booklist

In the summer of 1998, Harvard Business School hosted a research conference to review developments, best practices, and research in the field of change management. Among the participants were 50 leading scholars from diverse academic disciplines and management practitioners that included CEOs and consultants. Those in attendance put forward conflicting models of change. Several case studies of major but very different change efforts were presented, and attendees could not even always agree whether these attempts at change had been successful. Here, the editors, both Harvard business professors, organize the papers presented at the conference using a point-counterpoint format that reflects the debates that took place. They first distill two underlying theories of change: Theory E (economic value-driven change) and Theory O (organizational capability-driven change). They follow with seven sections consisting of two papers by opposing debaters and a chapter by a moderator that attempts to synthesize ideas presented. Such contributing luminaries as Peter Senge, Warren Bennis, Chris Argyris, Sumantra Ghoshal, and Christopher Bartlett offer their views. David Rouse
Copyright © American Library Association. All rights reserved

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Product Details

• Hardcover: 512 pages
• Publisher: Harvard Business Review Press (October 2000)
• Language: English
• ISBN-10: 1578513316
• ISBN-13: 978-1578513314
• Product Dimensions: 9.6 x 6.5 x 1.6 inches
• Shipping Weight: 2 pounds (View shipping rates and policies)
• Average Customer Review: 4.8 out of 5 stars  See all reviews (6 customer reviews)
• Amazon Best Sellers Rank: #792,083 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

2 of 2 people found the following review helpful:

5.0 out of 5 stars A Must, If You Do Not Wish To Get Lost Between HH.RR & OD, May 4, 2001

By 

Debra Bring "selective_bookstore" (Washington DC) - See all my reviews
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This review is from: Breaking the Code of Change (Hardcover)

Mike Beer has been for some time now clarifying the issues involved in Corporate Cultures, Human Capital, and Organizational Change. In this recent book Dr. Beer has done what SHOULD have been done decades ago: Linking several fields by providing useful Framework. This book synthesizes fields "apparently" diverse such as: Organizational Design with People & Team Profiling with Organizational Profiling and Human Dynamics. It is a precise, concise, extremely effective, and much needed book.

1 of 1 people found the following review helpful:

4.0 out of 5 stars Book for school on time and in good shape, February 8, 2010

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Jennifer L. Jacobs "jj" - See all my reviews
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This review is from: Breaking the Code of Change (Hardcover)

I order books for school on Amazon all the time. This purchase met my expectations. It was delivered in a timely manner and in good condition. I am very satisfied with my purchase.

3 of 4 people found the following review helpful:

5.0 out of 5 stars Human factor and business, July 14, 2003

By 

Arthur Bertinus (Netherlands) - See all my reviews

This review is from: Breaking the Code of Change (Hardcover)

Human factor and business
Michael Beer and Nitin Nohria's have present a framework toward as an integrative theory of change. Theory E has as its purpose the creation of economic value, often expressed as shareholder value. Its focus is on formal strong hierarchy structure and systems. It is driven from the top down with extensive help from consultants and financial incentives. There's know room the creative managers. You must agreed to the objects (make and keep the shareholders happiest man in town no matter what) that the top commands and demands.

Theory O has as its purpose the development of the organization's human capability to implement strategy and to learn from actions taken about the effectiveness of changes made. Its focus is on the development of a high-commitment culture. Its means consist of high involvement, and consultants and incentives are relied on far less to drive change. Change is emergent, less planned and programmatic. Here there's know place for silos but teamwork and personal development.

Resolving the Tension between Theory E and O
It is vary tempting if you find a business model that can boots the business finance, there's a big chance that you will follow that lead. But this can turn out on the short run well for the business and especially for the shareholders. But on the long run this have a great deal of stress on the employers by taken the human factor out of the workspace, and make the workplace a money machine. The authors argue strategies that works only on behave of the shareholders will not survive in the long run. To solve this problem one must look further than the shareholders and deeper than the business objectives (theory O). There must be a cultural transformation. Everyone must work for the same goal and not draining the gaol for the sake of the CEO. To make the cultural transformation, there will be more benefits to the organization in the long run. Finally this will create a win-win situation for the organization employees and the shareholders.

Even in the change literature are changing. In breaking the code of change the authors have may very well suggest that the old change agents like Weick, Pettigrew, Bennis, Argyris have lost contact whit the reality, they don't have the vision, the energy.
They are not change agents but organization development that help curtain organization to function within the circumstances under the economic situation of that particular moment. At the end of the book Beer and Nohria conclude that these agents didn't succeed to break the code of change.

The interesting thing is when you look at the company's the authors consider that make the loop from good to great, you will be surprise if you think that the good to great company's are IBM, Microsoft, Enron, Shell, well not anymore if you're, if you're looking for the company's that embodied the leadership that make the loop from good to great. Don't look for the company's that appear on the front page, or the company's that make the news. But look around the corner. My advise study this book, search for the human factor, and make your notes and act according to your vision. You may be surprise how in the smallest things you can be the one that turns things around from good to great. Good study material for organization consultants, HRM and MBA's.