MBA755 - Reflections on Module 1 Concepts

a) What's distinctive about the renewal stage of the organizational lifecycle?
The renewal stage is about bringing an organization back to life again. In other phases of an organization the business is not in a state where it needs to worry about renwal. The business is either just starting up and full of chaos, growth, and sustainment. Now the organization is at a standstill and it needs to do something immediately or else face failure. The renewal stage may completely change how the business operates, what it does, and the market it reaches. However, this phase is not about completely changing the corporate strategy, but revitalizing the company and the strategy.

b) What organizations that you are familiar with seem to be in the renewal stage? Why do you think so? General Motors - it has been declining for the past several years and it has been trying several different techniques to regain a share of the market it once had. There have been price cuts, employee cuts, new types of cars (hybrids, FlexFuel), and new marketing campaigns. AT&T is also going through a renewal change. Once the largest phone (landline) provider, AT&T is now focusing its efforts on cell phones, especially with its recent purchase of Cingular. Another example is Continental Airlines. Continental has recently changed the way it does business. It gives every passenger first class service with more leg room, pillows, blankets, on-flight free meals, and on-line check-in. Their tickets are often exchangeable for other cooperative airlines (Delta, USAirways, etc). and they now have a radically different approach to flying.

c) What characterstics make a leader effective during this phase?
Leaders that are willing to make the changes necessary to keep the company going and are able to recognize when change is needed are going to make the most effective leaders during the renewal stage. The leader will be good at team building and gathering a consensus. Since change is almost inevitable in this phase, the leader will need to obtain the buy-in of key personnel within the organization. There may be a shift in leadership as the top executive feels it is necessary to gather the right team or a different team to lead the company through this phase.

d) How would you recognize an organization in this phase?
Any organization that has made a change in corporate strategy could be identified as an organization that is going through a renwal phase in its lifecycle. For example, Fidelity was known for its 401(K) investments, but when the 401(k) exhausted its growth for Fidelity, the company had to come up with another strategy to keep it going. Another example is Southwest Airlines (SWA). SWA was known for its short-haul flights, but now has renewed its strategy to include long-haul flights with fast turnaround to reduce costs.

e) Which of the conceptual tools for renewal presented in this module are of particular interest to you?
I would say the one tool that I am most interested in is the ideas for renewal and how to recognize the changes that need to be made. Why are businesses forced into renewal? What is the cause for change? Is it the competition? Is it some regulatory change? I would like to learn more about identifying these changes and determining the next steps to take. The value-chain analysis and the force-field analysis are also good tools that help identify the strenghts and weaknesses of an organization and can help to clarify what needs to be done.

f) What else do you think that you will need to know in order to use these conceptual tools in your own work?
I would definitely need to learn more information regarding the companies. I believe that knowledge of the organizations for which I am working will be critical to the next steps that need to be made. A good idea of the competition and how they have handled any renewal strategies and how they have approached change in the environment.

g) How could you use the ideas from the renewal stage to help you in your professional life?
In my professional life I can take what I have learned and determine the lifecycle the organization is in or is headed toward. If I am a leader in one of these organizations I will be better prepared to handle the upcoming shifts. I think that knowledge of the lifecycle and the renewal stage is over half the battle of getting an organization through such a hurdle. For example, many leaders today are unaware of the changing environment and do not know how recognize when change is or is not needed.