Why do Organizations Change?

Why do Organizations Change? Causes
Jaap de Jonge, Management Consultant, Netherlands
Thanks for your excellent question... A first breakdown of such reasons or causes for companies or public organizations to change could be:

WHY DO ORGANIZATIONS CHANGE?
A. Factors in the external environment Factors outside the firm, generally beyond its control	B. Internal factors in the organization Factors inside the firm, generally under its control
A1. Political	B1. Leadership
A2. Economic	B2. Vision
A3. Social	B3. Mission (statement), purpose
A4. Technological	B4. Strategy
A5. Competition	B5. Culture, values
A6. Customer demands	B6. Policies, procedures, systems
A7. Environment, climate, pollution	B7. Merger

A useful model for external factors: PEST Analysis.
A useful model of internal factors: McKinsey's 7S Framework.

Any of the 14 main causes could be further split up into a large number of sub-factors. For example A2. Economic could be further split up into: economic growth, recession, interst rates, government spending, unemployment rates, taxation, infaltion, consumer confidence, globalization, etc.

Note that some of these main causes can be viewed as external or internal. And also that certain sub-factors can be viewed as being part of multiple main causes. As usual, the reality is always more complex than the management model. But how could we manage :-) without them?

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