How Good Is Your Company at Change?
As they deal with a business landscape that is evolving constantly, rapidly, and unpredictably, executives all over the world are full of questions about change: How much? How fast? How sustainable? And sometimes just How? They can’t hope to answer those questions unless they understand their companies’ capacity for change—but they’ve lacked good tools for measuring that. To address this problem, Michels and Murphy, partners at Bain, devised a way of systematically measuring what they call change power. In this article they explain how they devised their system, describe the nine main factors that they believe determine a company’s change power, and present data suggesting that companies that rank high on their change power index tend to perform remarkably well financially and have more-satisfied employees. Most organizations have a change power profile that corresponds to one of four archetypes. Using company examples, the authors suggest a specific approach to improvement for each one.
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