What is required for an international business to change its organization so that it better matches its strategy?
Within most organizations is a strong organizational inertia(=tendency of an established organization to continue with old habits). These origin from a range of different factors such as the distribution of power and influence, the existing culture of the firm, manager's preconceptions of the right way to conduct business and institutional constraints, either by government or firm itself.
So how can a business overcome the inertia in order to change its organization?
- Unfreezing the organization by shock therapy and clearly articulate the means of change.
- Transfer process means redesigning the whole system and involving employees in the process.
- Refreezing the process, which takes longer as it means allowing the new culture to establish itself while slowly forcing the old one out.