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Initiating Controversial Strategic Change in Organizations

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Initiating Controversial Strategic Change in Organizations “Some examples of social issues that have prompted strategic changes within business organizations over the years include environmentalism, civil rights, gender equality, and domestic partner benefits for gay employees. In each of these issues, private organizations led the way by challenging social norms and redefining the issues.” Initiating Controversial Strategic Change in Organizations By John R. Austin "It is “Whata bad plan follows that isadmits for those of no who modification." want to behalf of the organization in line with their change the world from what it is to what own values and standards. they believe it should be.” Leading change in organizations — Publilius Syrus –Saul Alinsky, Rules For Radicals is a difficult and politically dangerous First Century BC balancing act. These risks increase in I recently spoke with the CEO of an energy controversial strategic change, change that company. He told me of his frustration challenges deeply held organizational with his industry and his company. He saw norms and perhaps even broader social an urgent need to develop multiple alterna- norms (Austin, 1997). Tradition and history tive energy resources. On a personal level, strengthen resistance to the change at the he saw this as an ethical issue of global individual, organization, and industry level. stewardship while, as an executive, he saw Some examples of social issues that have the shift towards renewable resources as prompted strategic changes within busi- essential for the long-term sustainability ness organizations over the years include of his company. However, the pressure environmentalism, civil rights, gender to maintain growth, meet shorter-term equality, and domestic partner benefits for financial objectives, and not ‘rock the boat’ gay employees. In each of these issues, of industry solidarity made it difficult for private organizations led the way by chal- him to initiate strategic change in this lenging social norms and redefining the key area. issues. Strategic business changes that fit We sometimes assume those at the this category can include exiting markets, top of an organization have the capability large scale restructuring of supply chains, to initiate and carry out successful stra- or merging with long-time competitors. In tegic change because of their positions. this article, I offer some general observa- This assumption fails to recognize that tions for initiating such controversial organizational leaders are constrained by strategic change from a position of power organizational and environmental expecta- within an organization. At its core, this tions as well as perceptions about the types model assumes that a controversial change of actions that are legitimate for people of any kind will have greater likelihood in their position. Furthermore, we must of success if it is carefully framed and recognize that the power of these leaders is planned to fit within the existing value often derived from the status quo and any structures of the organization and its significant social reordering may under- environment. mine their base of power. Often, these When initiating a controversial change leaders are caught in the bind of radical process, the change leader(s) has two expectations. Activists (and this can include essential tasks to complete before begin- stockholders) can’t understand why the ning the change process. First, the change organizational leaders don’t act, while the leader develops an understanding of the leaders struggle to bring their actions on change that connects the change with other 52 OD PRACTITIONER Vol. 41 No. 3 2009 Figure 1: Reframing Steps in the Controversial Change Process Change goes public he struggled to align these two aspects of his value system. Racial segregation posed a unique opportunity to fuse these values. He began a series of exchanges with lead- Change Team/Champion Change Team/Champion ing academic experts on the integration of institutions. Rickey viewed segregation 1. Re-conceptualize domain 1. Focus on behavioral an issue with moral undertones, but he of possibility change, not value change also saw a business opportunity to secure 2. Identify “non-negitiable” 2. Link change with current a deeper talent base for his baseball team. core of the change stakeholder strategic The end result of these discussions was a imperatives deep understanding that he could act in a manner that was simultaneously good for business and also good for the country. In January 1943, Branch Rickey met with the Dodgers board of directors at the New York Athletic club to get their approval. Rickey raised the issue of recruit- ing black ball players in the context of legitimated strategies within the organiza- would play a large part in transforming improving the depleted talent pool (World tion. This requires an ability to re-concep- the Dodgers from loveable losers to envied War II had reduced the quality of available tualize the issue and create new strategies winners. More importantly, he paved the players at the time). Rickey was given the linking the controversial action with other way towards a broad desegregation of OK to proceed and he implored the board strategic imperatives. Second, the change baseball. However, Jackie Robinson was to keep the discussion secret in order for leader identifies the “non-negotiable” core only part of this change story. In fact, the Dodgers to keep ahead of other teams. of the change. Institutional pressures will that day in April occurred years after the By 1944, Rickey had the secret backing of tend to rework controversial changes into change effort had begun. Branch Rickey, the Dodger’s board to recruit black ball less controversial actions. The change the general manager and later part owner players. leader needs to have a clear understanding of the Brooklyn Dodgers, had been working After fully investigating Jackie of the parts of the change not up for nego- towards Robinson’s debut since 1943. Robinson, Rickey decided that he was the tiation during this process. I focus on the central role of Branch Rickey best choice. He had a record of stellar ath- Once the change is made public, the as the initiator and leader of this change letic performance, experience playing on a change leader works to generate behavioral initiative. desegregated sports team (UCLA football), change and link the change with accepted Desegregating baseball was a highly and evidence that he was a man willing to stakeholder strategic imperatives. Both of controversial action at the time. Segregated take risks for something he believed in (his these steps act to minimize the controver- institutions were deeply ingrained in court martial in the army). On August 28, sial element of the change. The change American culture and few institutions 1945 Rickey met with Robinson in Rickey’s leaders keep the focus on the strategic were desegregated. Black Americans and New York office. Robinson agreed to sign benefits of the change and attempt to keep white Americans operated in different and on October 23, 1945 Jackie Robinson the change from becoming a referendum social spheres. In the South, Jim Crow laws signed a contract with the Montreal Royals, between sets of deeply held values. institutionalized racism, while in the North the Dodgers minor league club. deeply held norms limited racial interac- Branch Rickey and the signing tion and encouraged social and profes- Change Strategy #1: of Jackie Robinson sional segregation. Re-conceptualizing what is possible In 1942, Branch Rickey found himself by creating a new frame I illustrate this process using the example wondering how he could make an impact of a successful controversial organizational “outside the park”. He was in his early Successful initiators of controversial change: the actions leading to the racial 60’s and had a record as a successful and change are able to redefine the change into integration of Major League Baseball in innovative executive. He became an avid a less controversial change that is consis- the United States. On April 15, 1947 the reader of research about race relations and tent with current social norms while at Brooklyn Dodgers open the baseball season segregation and informed his friends and the same time prompting a rethinking of against the Boston Braves. Starting at first family that he intended to work towards the those norms. This reframing of the change base was Jackie Robinson, the first black desegregation of Major League Baseball. enables the initiator to harness the current major league baseball player in the modern Rickey was a religious man as well as an mental models of the influential stakehold- era. Over the next few years, Robinson astute business man. Throughout his life ers and redirect these models to accommo- Initiating Controversial Strategic Change in Organizations 53 date the change. Branch Rickey was able gation before he could convince others of its the issue risk settling back to a modified to fundamentally redefine the issues prior value. status quo or fading away over time. Rickey to his initiation of the change attempt. His For many years, researchers have associ- needed to not just show that desegregation redefinition enabled him to use numer- ated paradoxical thinking with creativity. was compatible with baseball success, but ous justifications for the signing of Jackie Rothenburg’s (1979) concept of that desegregation was essential for future Robinson without betraying his belief in Janusian thinking is an example of this. baseball success. social justice. Janusian thinking enables the individual As another vivid example, consider Branch Rickey’s actions were guided to hold two contradictory thoughts to be the actions of Covington Hall, a poet and by two motives that initially seemed to be true simultaneously. The creative think- labor activist in the early twentieth cen- at odds with each other. The first motive ing triggered by Janusian thought leads to tury who attempted to mobilize southern was his insatiable drive to create a winning major insights and new worldviews.
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