• 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.

Divisional Performance and Change
Divisional performance and change

In previous chapters, we discussed the effect of corporate performance on the corporation as a whole. However, a corporation can be considered to be composed of several different parts, such as its divisions. We now need to discuss the relationship between overall organizational performance and the performances of these parts. In particular, we need to analyze change of a division as driven by the performance of that division and also by performance of the corporation. Corporate performance is, in turn, affected by divisional performance; thus we need also to analyze change in a division as affected by other divisions. It also is likely that focusing on the divisions could lead to the neglect of corporate-level adaptation. These issues ...

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