Anticipating Change
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1. Is this an example of organizational renewal or transformation? Why?
Before deciding if this is an example of organizational renewal or transformation, we must first know the difference between the two and how they each affect the organizational culture. First, organizational renewal may be defined as an ongoing process of building innovation and adaptation into the organization. Meaning change is inevitable and if the organization cannot accept or adapt to the change the organization will not be a success. Next, organizational transformation may be defined as the action of changing an organizations form, shape, or appearance, or changing the organizations energy from one form to another. This type of change is usually implemented from the top and forced on the employees. Sometimes this style works but there are the instances when the employees rebel against the changes forced upon them and the organization begins to suffer.
This is an example of organizational renewal and not transformation. There are four disciplines of organizational renewal – truth telling, sacrifice, innovation and intentions. Jobs has carried out these in Apple, he has sacrificed his own goals and has returned to Apple, he has used innovation to roll out iMac and iBook. In addition, he has confronted employees with the truth and these have been interpreted as tantrums and
have turned people against him. He is very clear in his intentions; he is providing computers to change the world.
2. Do entrepreneurs like Steve Jobs have to leave large organizations to achieve innovation, or can they successfully transform larger companies? Why?
Entrepreneurs like Jobs do not have to leave organizations to achieve innovation because they can strive in their own organizations. In their own organizations they can innovate products, processes and policies. In addition, if need be they can transform their organizations. They can assume leadership in the key areas and develop the organization into a formidable company.