ORGANIZATIONAL RENEWAL

What is organizational renewal?

Organizational renewal is when a company reinvents to take advantage of new areas of opportunity without suffering a performance crisis.

How is organizational renewal different from other forms of change?

Organizational renewal is a proactive step to reinvent a company’s business model and organization, this is different from a Turnaround when a company’s transformation is in response to a performance crisis.

How is organizational renewal different from organizational change?

Organizational renewal is a form of organizational change that is proactive and radical, involving a reinvention of the business or organizational, not an incremental improvement.

Do all organization’s need organizational renewal?

All business models have a finite lifespan, it is the job of leaders to ensure that the company transforms before a performance crisis develops.

What is an example of Organizational Renewal?

Microsoft has renewed its business by transferring its Office productivity suite from a dependency on the enterprise license with software installed on a desktop, toward a monthly license model that uses software-as-a-service. Although there was an emerging threat from Google’s gmail suite, Microsoft was able to transform before this became a threat to its profits, and so neutralized the disruptive threat. At the same time, the Microsoft CEO, Sataya Nadella, transformed Microsoft from a ‘know it all’ to ‘learn it all’ culture.

Source: Binns et al, Art of Strategic Renewal, MIT Sloan Management Review, November 2013