• Summary
  • Contents
  • Subject index

In this book, Lex Donaldson, one of the leading scholars in the field of organization theory, introduces a compelling theory of performance-driven organizational change, Organizational Portfolio Theory. In explaining why organizations change and also why they fail to change, the theory reconceptualizes the organization as a portfolio with a number of different causes of organizational performance varying over time. The author argues that without a performance crisis there is a good chance that necessary organizational changes will not be forthcoming, and that moreover, the adaptive change induced by the crisis creates the capacity for fresh organizational growth.

Organizational Portfolio Theory
Organizational portfolio theory

In this book we seek to offer a theory of the organization as a portfolio. There are various internal and external causes that affect organizational performance. In turn, organizational performance drives organizational change and adaptation. For an organization that is maladapted, the adaptive change that it needs tends to occur when poor organizational performance leads to a crisis. Such poor performance comes about through the maladaptation together with other causes depressing organizational performance. The theory states how each of these causes interacts with organizational maladaptation to determine the level of organizational performance. Variations of these causes over time define the performance fluctuations that are the motors of organizational change. Sometimes, these causes reinforce maladaptation so that organizational performance is driven ...

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