Resistance to change

Various constraints may arise which can act as resistances to change, including

Internal (individual)
Fear of failure
ignorance
loss of job/career status
inertia (nee d for paradigm shift)
uncertain consequences
Reduction in role/influence

External (organisational)
Board members
culture
structure
sunk costs
limited resources
contractual agreements
beliefs and recipes
investors
suppliers
collaborators
regulators
media
politics

Examples - HP/Compaq, p78


Where change actions go outside the existing paradigm, resistance is usually stronger. People may be expected to alter their core beliefs or accepted ways of operating substantially. The organisation may become bogged down in trying to achieve the change and lose focus on the strategy. Johnson(1992)'s strategic drift starts to happen.

Strategic drift happens when the rate of change in the organisation becomes less responsive to and in line with the rate of change in its operating environment, leading to divergence between the two rates. There is a view that strategic drift has happened with big Japanese consumer electronics companies such as Sony. Often the drift will be noticed when there is a drop in performance or when a suitable signal is received from the environment, usually occuring after a period of indecisive flux. (phase 2). Examples include a rapid drop in credit rating or share value or public confidence or quality measures etc. At the end of the period of flux, revolutionary change is attempted. If it works, the organisation's strategic drift reduces (but the cycle may repeat). If the organisation is not capable of handling and integrating the revolutionary change, or it is too late to make the change anyway, then it may not manage to reduce the drift and fails (which may mean bankrupcy, closure, takeover etc).