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The Blog of Daniel Wolf

Archive for June, 2007

The Context of Change

Wednesday, June 6th, 2007

The issues that surround growth and change are tempered by a company’s worldview and readiness to evolve. A Business Week article [06/04/07] by David Kiley deals with the evolution of Ford under CEO Alan Mulally. At the heart of everything is the context of change Mulally must engage at the executive level, and across the enterprise.

What exactly do we mean by the context of change? To start with, we mean the combination of strategy, culture, structure and resources that define the organization. How is the company’s strategy relevant to people across the company? Does the company’s culture support or inhibit its readiness? How does the company’s structure serve individuals and groups as they develop, produce and deliver solutions for customers? And, how are the company’s resources arranged to support the strategic agenda? Do these things connect with business reality? These questions and many more help reveal what could be done, and what should be done on the journey of business change. The evolutionary path of Ford is at a critical juncture.

At another level, business change and adaptation needs to be focused on matters that have real impact. The context of change is made relevant and meaningful to people when we look at issues that require three kinds of change:

  • Change at the Process and Practice Level: These relate to business methods and procedures.
  • Change at the Business Direction Level: These relate to business objectives and intention.
  • Change at the Enterprise Strategy Level: These relate to business networks and definition.

The context of change reflects the natural tensions of urgency and patience. These tensions help engage the strategic conversations that can get people to look at problems in new ways. They can serve to engage the kind of strategic thought and behavior that taps into realistic options and resolute action. These tensions power the tools of perspective and judgment. Mulally and many others use these tensions to reset the context of change.

In Prepared and Resolved, we view the context of change as part of the strategic agenda, an evolutionary truth in every company. The leadership and management of change are critical to executive and governance interests, at every level of the organization. Change draws energy in strategy direction, integration and execution.