Models of Organizational Change and Transformation

Excerpts from the Paper

Models of Organizational Change and Transformation
Tushman—O’Reilly Congruence Model & IBM
This paper seeks to analyze the changes that IBM Chief Executive Samuel J. Palmisano began implementing at IBM in 2005 by utilizing the Tushman-O’Reilly Congruence Model for organizational diagnosis. Palmisano’s original idea of organizational changes at IBM stemmed from a conversation he had with CEO of Proctor & Gamble Co. A. G. Lafley who “stunned him by saying that P&G might be able to get by with only a quarter of its workforce,” by outsourcing to “specialized service companies [who] might be able to handle everything else, from human resources to customer care” (Hamm, & Ante, 2005, Para 1).
According to the Tushman—O’Reilly...

.....tates that a lack of congruence between these organizational variables will lead to a less coherent, functional, effective and successful organization, because it impedes attainment of strategic goals. IBM seems to have taken these ideas into some kind of consideration as they are progressing well with the new service-oriented strategies, however the TOCM serves as an effective model that is always available for updates in diagnosing for organizational change if needed by IBM.
REFERENCES
Hamm, S. & Ante, S. E. (2005, April 18). Beyond blue. Business Week, 39(29), 68-76.
Tushman, M. & O’Reilly, C. (1997). Working through innovation: a practical guide to leading organizational change and renewal. Boston: Harvard Business School Press.