Executive Interviews: Interview with Michael Beer on Change Management
June 2007
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By Dr. Nagendra V Chowdary
Michael Beer
Cahners-Rabb Professor of Business Administration, Emeritus at the Harvard Business School, Chairman and co-founder of TruePoint a research based consultancy.
How should Change Management
be initiated and practiced in family
businesses? The same principles and ideas I have
outlined above hold. Research by
Danny Miller (Miller and Miller:
Managing for the Long Term, HBS
Press, 2005) actually shows that
family companies that succeed in
preventing family tensions from
interfering with firm effectiveness
are actually more effective and better
performers than publicly traded
companies. In these firms, leaders
take a long-term perspective because
they want to leave a legacy.They
develop strong relationships
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with
employees, customers, suppliers and
other stakeholders and they do not
take short-term actions to undermine
these. In these companies, the leader
is able to ensure that those in the
family not suited to the business stay
out of the business and find other
careers. They also engage younger
brothers, sons and daughters as
equal as opposed to using the
authority of their position.
Overcoming family tensions is not
easy, but that is the only way the
ingredients needed for change can be
managed. Professor, with all the due
respects, what was observed over the
decades (in management research,
right from Tom Peters In Search of
Excellence), had largely been the case
of theory being fit into practice? The
sole exception seems to be Peter
Drucker's management literature.
The researchers, when they observe
certain patterns in corporate
happenings, come out with theory
constructs and in the process, seem
to belittle the actual corporate
happenings (may it be to do with
innovation, best practices, cost
advantages, core competencies,
differentiation, etc.). And therefore,
theory/concept becomes the frontend
and the corporate happening
becomes the back-end. Is it
intentional or is it accidental? How
should serious academicians look at
this phenomenon? Both sets of concepts and theories
have a legitimate place in the
discourse about management and
organizations. Peters and
Waterman research was empirical.
They extracted those practices
they found cut across the excellent
companies they studied and
developed their conceptual
framework from these
observations. Inevitably, the ideas
that emerge from this research are
based on what has led to success in
the past and it is assumed that
these patterns will hold in the
future. Of course, we learned later
that the successful companies in
the Peters and Waterman research
did not always sustain excellence.
Like IBM, their performance failed
for a long period of time before
recovering. Others did not
rebound. Circumstance changed
and these companies lacked
adaptive characteristics Peters and
Waterman missed or under
emphasized. This can be explained
by their research method of
Interviews with senior leaders and
archival data. They did not get
deeply into these companies and
because of this, did not come to
understand how they functioned
and/or did not evaluate these
findings in the context of the
changing environment. It also
possible, of course, companies
inevitably go through a life cycle
that leads to eventual decline, the
argument of population ecologists. Drucker too was a careful observer
of managerial behavior, but he
placed what he saw in the context
of the future. He was as much a
futurist as an empirical observer.
In critiquing managerial behavior
he identified flaws that more timid
researchers with less courage or
wisdom did not address. As a
critic, Drucker was not acting as an
empirical researcher. He was a
critic.
1.
Change Management Case Studies
2. ICMR
Case Collection
3.
Case Study Volumes
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The Interview was conducted by Dr. Nagendra V Chowdary, Consulting Editor, Effective
Executive and Dean, IBSCDC, Hyderabad. This Interview was originally published in Effective Executive, IUP, June 2007. Copyright © June 2007, IBSCDC
No part of this publication may be copied, reproduced or distributed, stored in a retrieval
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