Changing the Game: Organizational Transformations of the First, Second, and Third Kinds

Rating:
Summary: "Business is a game without an end".
Review: "In its broadest sense, a game involves procedures or strategies for gaining certain ends. The game of business is to use resources (people, money, ideas, equipment, and tools) to gain certain ends desired by the organization. For a corporation, the objectives of the game are to increase profitability and shareholder value...Whether it is recognized or not, all organizations operate under a 'game plan'. The 'organizational game plan' consists of the basic concept of the game being played as well as the fundamental strategy for playing the game...No matter what game an organization chooses to play or how it chooses to play it, there are certain periods in an organization's life when 'the game' (either the game itself or how it is played) needs to be changed. This occurs when there have been major changes in the economic environment, or some kind of revolution in technology or the nature of competition. It can also happen simply as the result of significant, rapid organizational growth...As used in this book, the phrase, 'changing the game' has a dual meaning. First, it refers to changes in the game being played by an organization. This involves changes in the business an organization is actually in. In addition, the phrase also refers to changes in the way the game is being played (i.e., how a firm operates). Both are major aspects of a business and both can require major transformations, either at different points or even at the same time. These transformations are the focus of this book and define what we mean by 'changing the game'...During the past few years, there has been increasing use of the terms 'transformation' and 'change' in business literature. Some people unfortunatelly use these terms synonymously. That is not the way we will use these terms in this book...Our focus in Changing the Game is on transformation rather than merely incremental changes" (pp.4-9).

In this context, Eric G. Flamholtz and Yvonne Randle:

* describe 'pure' types of transformations, including what they have termed Transformations of the First, Second, and Third Kinds:

1. Entrepreneurial transformations to professional management including the special case of family business transformations - First Kind (more detailed discussion and examples of this kind see Chapter 3).

2. Revitalization transformations of established companies - Second Kind (more detailed discussion and examples of this kind see Chapter 4).

3. Business vision transformations - Third Kind (more detailed discussion and examples of this kind see Chapters 5-6).

and note that actual organizations sometimes engage in compound transformations, consisting of more than one type of transformation simultaneously.

* present a framework that managers can use to understand and plan what must be done to build an organization with a high probability of long-term success, and examine four critical factors that influence the design of a successful business enterprise:

1. The 'business concept' that defines the business a company is in.

2. Six key 'building blocks' of organizational success.

3. The 'size' of the enterprise.

4. The 'environment' (markets, competition, and trends) in which the enterprise will exist.

* focus on the strategic transformational planning process in order to provide a tool for assisting in the process of managing transformations.

* examine how to design an organizational structure that will support a firm's transformation.

* examine the issues involved in transforming an organization's structure after a strategic transformational plan has been developed, and show that the choice of the form of organization to help implement a transformational plan is a strategic issue in itself.

* focus on the behavioral aspects of organizational transformations, and describe the important role leadership plays in not only helping to transform the behavior of individuals within an organization, but in changing the overall game that the organization is playing.

* discuss two additional, powerful tools -performance management systems and corporate culture management- that can be used to transform the behavior of all employees within an organization.

* present ten key lessons for Managing Transformations and Changing the Game.

Finally, they argue that "unlike chess and the NCAA basketball tournament, business is a game without an end. There is no national championship tournament for business. The game goes on and on. In a sense, a basketball program is like a business. A given team may win a championship one year, but there is always the next year and the next and the next, just as in business. As soon as one profitable year is completed, the next emerges. There is, however, one constant in the business game year after year: the need to understand the process of managing organizational transformations. Accordingly, the final lesson is: adapt and increase the probability of future success; or remain fixed in the existing paradigm and risk failure. The game is there for the taking".

I highly recommend.

Rating:
Summary: "Business is a game without an end".
Review: "In its broadest sense, a game involves procedures or strategies for gaining certain ends. The game of business is to use resources (people, money, ideas, equipment, and tools) to gain certain ends desired by the organization. For a corporation, the objectives of the game are to increase profitability and shareholder value...Whether it is recognized or not, all organizations operate under a 'game plan'. The 'organizational game plan' consists of the basic concept of the game being played as well as the fundamental strategy for playing the game...No matter what game an organization chooses to play or how it chooses to play it, there are certain periods in an organization's life when 'the game' (either the game itself or how it is played) needs to be changed. This occurs when there have been major changes in the economic environment, or some kind of revolution in technology or the nature of competition. It can also happen simply as the result of significant, rapid organizational growth...As used in this book, the phrase, 'changing the game' has a dual meaning. First, it refers to changes in the game being played by an organization. This involves changes in the business an organization is actually in. In addition, the phrase also refers to changes in the way the game is being played (i.e., how a firm operates). Both are major aspects of a business and both can require major transformations, either at different points or even at the same time. These transformations are the focus of this book and define what we mean by 'changing the game'...During the past few years, there has been increasing use of the terms 'transformation' and 'change' in business literature. Some people unfortunatelly use these terms synonymously. That is not the way we will use these terms in this book...Our focus in Changing the Game is on transformation rather than merely incremental changes" (pp.4-9).

In this context, Eric G. Flamholtz and Yvonne Randle:

* describe 'pure' types of transformations, including what they have termed Transformations of the First, Second, and Third Kinds:

1. Entrepreneurial transformations to professional management including the special case of family business transformations - First Kind (more detailed discussion and examples of this kind see Chapter 3).

2. Revitalization transformations of established companies - Second Kind (more detailed discussion and examples of this kind see Chapter 4).

3. Business vision transformations - Third Kind (more detailed discussion and examples of this kind see Chapters 5-6).

and note that actual organizations sometimes engage in compound transformations, consisting of more than one type of transformation simultaneously.

* present a framework that managers can use to understand and plan what must be done to build an organization with a high probability of long-term success, and examine four critical factors that influence the design of a successful business enterprise:

1. The 'business concept' that defines the business a company is in.

2. Six key 'building blocks' of organizational success.

3. The 'size' of the enterprise.

4. The 'environment' (markets, competition, and trends) in which the enterprise will exist.

* focus on the strategic transformational planning process in order to provide a tool for assisting in the process of managing transformations.

* examine how to design an organizational structure that will support a firm's transformation.

* examine the issues involved in transforming an organization's structure after a strategic transformational plan has been developed, and show that the choice of the form of organization to help implement a transformational plan is a strategic issue in itself.

* focus on the behavioral aspects of organizational transformations, and describe the important role leadership plays in not only helping to transform the behavior of individuals within an organization, but in changing the overall game that the organization is playing.

* discuss two additional, powerful tools -performance management systems and corporate culture management- that can be used to transform the behavior of all employees within an organization.

* present ten key lessons for Managing Transformations and Changing the Game.

Finally, they argue that "unlike chess and the NCAA basketball tournament, business is a game without an end. There is no national championship tournament for business. The game goes on and on. In a sense, a basketball program is like a business. A given team may win a championship one year, but there is always the next year and the next and the next, just as in business. As soon as one profitable year is completed, the next emerges. There is, however, one constant in the business game year after year: the need to understand the process of managing organizational transformations. Accordingly, the final lesson is: adapt and increase the probability of future success; or remain fixed in the existing paradigm and risk failure. The game is there for the taking".

I highly recommend.

Rating:
Summary: Excellent help in creating a "map" to your objectives.
Review: How do you begin to look at your business "on the horizon"? The company's management team must create a "map" which will lead the organization to it's objectives. Eric will ask you "by the way, do you know what your objectives are?" He really helps you clarify and organize. As Yogi Berra once said "If you don't know where you're going, you're probably going to get there"!

Rating:
Summary: This the book for managing the business!
Review: It is one of the best books that I never read in my life. Well structured, clear, direct to the point. It is the perfect book if you are looking for frames in order to analyze your business. I strongly suggest to all the MBAs.

Rating:
Summary: Clear, crisp and practically powerfull tool.
Review: Not only is this book written in a clear and crisp manner, but the tools described in the book are practical to use and the results easy to interpret.

Rating:
Summary: Excellent help in creating a "map" to your objectives.
Review: This book is extremely useful for general managers. It has had a profound impact on the way I think about organizations. As authors, Flamholtz and Randle are clear, logical, and practical. As professors, their years of experience as successful strategy consultants translated into one of the best classes I have taken during my MBA years. I highly recommend this book, and will buy it for my friends who are passionate about management.