An Intrinsic Constituent of the Contemporary Business Environment - Essay Example

Running Head: The Concept of Rapid, volatile and discontinuous change [Name] [Professor Name] [Course] [Date] Overview Rapid, volatile and discontinuous change is an intrinsic constituent of the contemporary business environment that is characterized by dynamic technological change and the global economy. This essay concludes that organization should integrate the concept of rapid, volatile and discontinuous change management to become more flexible and responsive to uncertainties. Introduction Rapid globalization and dynamic technologies are among the key forces that have intensified competitiveness and increased instability, uncertainty in the business environment leading to the development of the concept rapid, volatile and discontinuous change (Weick and Quinn, 1999; Anon, 2002). This essay argues that organizations should manage these change responsively, productively and positively in order to transform the organization to a desired future state. The essay examines the concept of rapid, volatile, discontinuous change and how it applies in strategic management. The model used in assessing the role, impacts and implications of the concept is also discussed, including how CEOs should respond to discontinuous change. Lastly, evidences on whether CEOs do respond appropriately to discontinuous change are also explored. The concept of rapid, volatile, discontinuous change Rapid, volatile and discontinuous changed is an intrinsic constituent of the contemporary business environment that is characterized by dynamic technological change and global economy. In principle, rapid change depicts the concept that change that happens frequently (Noble, 1995). Volatile change depicts the concept that change can either be massive or small. Lastly, discontinuous change conceptualizes that change is episodic and that it can occur any time (Weick and Quinn, 1999). Consequently, managing these changes requires using structured and deliberate approach aimed at transitioning an organizations current state to a desirable future state ((Yilmaz and Kilicoglu, 2013). Where the concept fits within Strategic Management process In response to the concept of rapid, volatile and discontinuous change, the concept of strategic management has become increasingly important for organizations looking to achieve strategic competitiveness and increase or sustain revenues. The concept fits within the internal assessment and external analysis of the management process (Morrison and Wilson, 1996). The two comprise stages in strategic management process which aim at streamlining the organization towards attaining a desired future stated (Yilmaz and Kilicoglu, 2013). Essentially, strategic management integrates the traditional management techniques such as planning, budgeting, controlling, monitoring and marketing into a more extensive context. It also takes into consideration the organization’s internal capabilities, the external environment and the organization’s objective and direction (Schreyogg and Kliesch-eberl, 2007). Within the scope of external analysis, the concept of rapid, volatile and discontinuous change fits within the premise that the aforementioned traditional management techniques must be anchored in changes that have happened, changes that are happening and changes that will happen outside the organization. In each of these changes, the focus is on the threats and opportunities that such external changes have to an organization. Within this scope, the external changes include the economic, technological, social, political, and environmental trends (Coughlan et al, 2003). Conversely, within the scope of internal assessment, the concept requires that the aforementioned traditional strategic management tools are applied to analyze what changes have happened within the organization in the past, and what should be leveraged to attain the necessary capabilities to attain a desirable future state. For instance, the organization’s human resource, finances, information and technology is reviewed. The findings are afterwards applied to determine the organization’s past and current capacities and what should be done to ensure that the organization becomes flexible and responsive to these changes and meets future needs (Schreyogg and Kliesch-eberl, 2007). Model for assessing the role, impacts and implications of rapid, volatile, discontinuous change The model of experiential learning can be used to measure rapid, volatile and discontinuous change in an organization. The application of the model is based on the principle that the momentum for organization change is triggered by performance – which may either be above or below the targeted level (Lant & Mezia, 1990). The three basic components of the model include the target level of performance that is compared with the actual performance. Next, the performance – whether above or below average – is assessed to determine failure or success of the organization and lastly, the acquisition and processing of information on alternatives take place (Lant & Mezia, 1990). How CEOs should respond to discontinuous change Strategic leaders in the organization such as CEOs are tasked with ensuring that companies achieve strategic competitiveness and earns high returns for shareholders (Waldman and Ramirez, 2001). The CEO should identify the change imperative or the underlying changes and why the organization should respond to such discontinuous change. The organization should also endeavor to provide a clear direction for teams or the human resource to engage in managing the change to maintain or increase the firm’s momentum. The organization should assign the right resources to people within the organization to execute strategic plans aimed at managing discontinuous change (Coughlan et al, 2003). Consequently, the chief executive should be able to manage the uncertainties of the contemporary occurrences both within and outside the organization and turn them to an organization’s advantage. The chief executives should continuously adjust the organizational structures, the company’s competitive advantage and the procedures demanded by the market place (Waldman and Ramirez, 2001; Florida 2013). The CEOs also need to improve as well as make more consequential and faster strategic decisions because of the changes, while at the same time ensuring there is pragmatic analysis, relevant yet rigorous debates and any necessary alteration of the long-term business plan to respond to the changes (Florida 2013). Evidence on how CEOs respond to discontinuous change An extensive body or research continues to show that CEOs have failed to respond effectively to discontinuous change (Rohrbeck 2010). A leading example is the failure of Kodak to respond effectively to discontinuous technological change, of shifting to digital photography from chemical-based photography. Due to this, the company faced stiff competition from new small-scale market entrants as result reducing some 80 percent of its workforce to avoid going bankrupt (Reed, 2003). Indeed, more organizations such as IBM and Royal Dutch Shell among many others have fallen into the same situation. CEOs have failed to respond effectively to discontinuous change because of the high rate of change such as rapid technological change that has proved difficult to keep up with for some firms. Other factors include ignorance, CEOs face information overflow and therefore lacks capacity to evaluate current and future trends ((Rohrbeck 2010). Conclusion In conclusion, the concept of rapid, volatile and discontinuous change requires that in the highly globalized economic environment marked by volatile markets and dynamic technologies, organizations should manage the change responsively, productively and positively to meet their strategic objectives. In other words, this means that organizations have to be responsive, adaptable and flexible. Rapid and volatile change requires high levels of response, while discontinuous change requires radical efforts. References Anon (2002). Contemporary Strategic Management Practice within Global Business Environment. Chapter 6. Retrieved: Coughlan, P., Coghlan, D., Lombard, L., McNichols, T & Nolan, R. (2003). "Managing collaborative relationships in a period of discontinuity." International Journal of Operations & Production Management 23(10): 1246-1259 Florida, J. (2013). Managing Uncertainty and Succeeding In Today’s Business Environment. Retrieved from Parallel Living website: Lant, T. & Mezias, S. (1990). “Managing Discontinuous Change: A Simulation Study of Organizational Learning and Entrepreneurship.” Special Issue: Corporate Entrepreneurship 11:147-179 Morrison, J. & Wilson, I (1996). The Strategic Management Response to the Challenge of Global Change. The World Future Society. Retrieved: Noble, B. (1995). Discontinuous Change: Leading Organizational Transformation. retrieved from Strategy+Business website: Reed, C. (2003). The Need to Innovate: The Power to Change. CSR Media. retrieved from: Rorhbeck, R. 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