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2019 | Book

Solving the Change Paradox by Means of Trust

Leveraging the Power of Trust to Provide Continuity in Times of Organizational Change

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About this book

Given that studies repeatedly suggest a 70 % failure rate of organizational change, Katharina de Biasi attempts to answer the question why traditional change theory has yet to prove successful, although mastering change has been identified as one of the “Management Challenges for the 21st century”. As a result the author proposes to leverage the change paradox continuity in times of change and to solve it by means of trust. A trust-based formula for successful change is derived which constitutes the finding that trust-formation must precede transformation and which outlines two levers for a positive outcome.

Table of Contents

Frontmatter
Chapter 1. Introduction
Abstract
The ability to innovate and adapt to continuously changing environments has become a critical factor to the economic success of today’s organizations and equally crucial for long-term survival (Brown & Eisenhardt, 1997, p. 1; Dawson, 1996, p. 59; Kotter, 2012b, pp. 20, 186; McCalman, Paton, & Siebert, 2016, p. 24). Therefore, mastering the challenge of organizational change has been identified as one of the Management Challenges for the 21st century (Drucker, 1999, p. 73).
Katharina de Biasi
Chapter 2. Understanding Change
Abstract
Everyone has heard these aphorisms or other words of everyday wisdom about transformation and change. Change is not something new. In fact, quite the contrary holds true.
Katharina de Biasi
Chapter 3. The Interdependent Relation between Continuity and Change
Abstract
The preceding part of this work illustrated that change is nothing new nor solely contem-porary. Instead, the notion of change even dates back to ancient Greece. As already mentioned, the idea of a constant state of flux and the dictum nothing endures but change can be ascribed to Heraclitus of Ephesus who “emphasized the primacy of a changeable and emergent world” (Chia, 1999, p. 214).
Katharina de Biasi
Chapter 4. Understanding Trust
Abstract
Today’s business is tougher, more complex, competitive, and fast-paced than ever (Kotter, 2012b, pp. 20, 186; Schein, 2004, p. 393). As explained in subsection 2.2.1, on the grounds of increasingly dynamic environments (VUCA), organizations find themselves confronted with a continuing stream of changes. No longer can they hide from threats such as globalized markets, intensified competition, disruptive innovation, digitalization, or so-called megatrends.
Katharina de Biasi
Chapter 5. The Interdependent Relation between Change and Trust
Abstract
As mentioned in the introduction of this work and explained in more detail in chapter 2, changing or more specifically adapting to rapidly shifting competitive environments is required for long-term organizational survival and success (Brown & Eisenhardt, 1997, p. 1; Mishra, 1996, p. 282; D. E. Morgan & Zeffane, 2003, p. 56). The need for change thus becomes a condition of contemporary organizations (Sorensen & Hasle, 2009, p. 10). From a management point of view this results in the strategic challenge of how to embrace change and how to adapt to perpetually altering conditions without running into employee resistance, given the amount of change employees have to cope with. As shown in the second part of chapter 2, organizations are struggling with this challenge in most instances.
Katharina de Biasi
Chapter 6. Solving the Change Paradox and Leveraging the Power of Trust
Abstract
Chapter 5 elaborated on the interdependent relation between change and trust and its importance in the successful implementation of change (Mclain & Hackman, 1999; Michaelis et al., 2009; Reinke, 2003; Whitener, Brodt, Korsgaard, & Werner, 1998). It is best summarized by its reciprocal relationship in which trust affects the change process, i.e. trust as a prerequisite for change, and the change process affects trust, i.e. (dis-)trust as an outcome of change (Lines et al., 2005; Sorensen & Hasle, 2009). The present chapter will focus on the role of trust in solving the change paradox of balancing continuity and change.
Katharina de Biasi
Chapter 7. Embarking on the Change Endeavor and Successfully Maneuvering through Times of Change
Abstract
In his book Management Challenges for the 21st Century Drucker (1999, p. 92) asserted that “[o]ne thing is certain for developed countries—and probably for the entire world: We face long years of profound changes.” He concluded that it would be futile “to try to ignore the changes and to pretend that tomorrow will be like yesterday.” Ironically, Drucker further argued that even in times of rapid change most organizations were still likely to adopt this policy since they were (mis-)guided by the belief that what had made them successful in periods preceding the change would also maintain their success in periods following the change (ibid.; see also McCalman et al., 2016, p. 23; Senge, 1990, p. 57).
Katharina de Biasi
Chapter 8. Conclusion and Summary
Abstract
According to Reina and Reina (1999, p. 151) “[t]ransforming organizations to become more trusting and productive environments is the challenge of leaders today and the work of leaders tomorrow.” Consequently, it may be inferred that organizational change, economic success, and long-term survival are intimately connected to trust. Along these lines, Senge (1999, p. 5) argues that in their attempt to create a ‘learning organization’—or to become a ‘change leader’ (Drucker, 1999, p. 73) or ‘perpetual learners’ (Schein, 2004, p. 393)—organizations actually strive to create “better relationships, with less games-playing and more trust.”
Katharina de Biasi
Backmatter
Metadata
Title
Solving the Change Paradox by Means of Trust
Author
Katharina de Biasi
Copyright Year
2019
Electronic ISBN
978-3-658-23912-1
Print ISBN
978-3-658-23911-4
DOI
https://doi.org/10.1007/978-3-658-23912-1

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