4.0 Summary of Key Points
Key Points from “Change Arena”:
• Traditionally, SMEs approach change with the:
o Adoption of generic or packaged initiatives
o Unsystematic planning and monitoring of projects
o Use of “haphazard” change management
• Our perspective is that SMEs ought to approach change by:
o Taking a proactive stance
o Balancing adaptive and generative learning
o Planning and monitoring projects systematically
o Focusing on intentional change management activities
• Not only should companies be prepared for change, but they ought to learn how to
identify the need to change and ultimately to manage change successfully
Key Points from “The External Environment”:
• Factors that often constrain openness to the environment are:
o Existing technology
o Availability of resources
o Lack of negotiation or collaboration skills
• Activities than help to foster openness to the environment are:
o Scanning
o Benchmarking
o Tracking Performance
o Networking (partnerships, collaborations)
• Leaders should continually scan the firm’s external environment for “change triggers”
that could either force a change or that may represent an opportunity to positive change
Key Points from “The Organization”:
• Competitive strategy is a long-term plan to achieve the firm’s vision. The competitive
strategy should drive the four organizational elements in pursuit of the vision. The four
organizational elements are:
o The formal organization- (structures, systems and processes)
o Work- (nature of jobs, teams and rewards)
o People- (KSAs, education and training)
o The informal organization- (culture, norms, values and beliefs)
• Formulate a strategic plan, follow it, and make sure the organization knows the strategy
and is “aligned” with it.
o Update your plan regularly to reflect new products, changing marketplace, etc.
Strategic plans should be flexible to allow for innovation and subsequent growth
Key Points from “Alignment and Innovation”:
• Innovation can directly support the company’s competitive strategy by increasing the
rate of new products and services that are successfully introduced each year.