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Now that we have studied the chapter on LEADING CHANGE (Cameron & Green), review your initial reflection. 

READ CHAPTER 4-5

Answer the questions below…

· How important is visionary leadership in the change process? 

· What other qualities are needed when leading change?

700 words minimum 

At least 3 citations with page number.

CITATIONS AND REFERENCE REQUIRED 

TITLE PAGE NOT NECESSARY 

Initial reflection :

Chairman CAO is considered one of the industrious entrepreneur who braved cultural diversity to set up one of the most successful Chinese companies in the United States of America. Chairman Cao decided to set up Fuyao Glass America Inc. in 2014, a company specializing in the manufacturing of construction and automobile glasses. The setting up of the company in Ohio came against the backdrop of GM shutting up its operation in Dayton, which led to the loss of 10,000 jobs. Therefore the launching of the Fuyao plant came as a relief to the affected individuals as it created 2,000 jobs. 

 Setting up a successful plant in a foreign land requires capital and employees, but more importantly, it calls for mutual understanding anchored on blended culture. It is against this background that Chairman Cao accepted the creation of the documentary about the American Company on Netflix. The documentary, supported by Obama administration documents, the diversity and hitches between management and employees and cultural bottlenecks between American workers and Chinese management. The documentary has served as the precursor of an in-depth understanding of the Fuyao Company by the Americans. To ensure that the company is firmly anchored and accepted by the American Chairman, CAO allowed the American to visit his company once per month for familiarization purposes.

CEO Cao successfully adapted to the US culture, which saw his company’s growth. Cao declined proposals to use both the Chinese and US arts to bridge the diversity gap but instead resorted to only using the US arts. His resilience and focus on the blended culture resulted in some American workers creating strong brotherhood bonds with their Chinese counterparts. The camaraderie ended with both Chinese and American workers attending barbecues together. Through such interaction, CEO Cao managed to intertwine the two cultures, thus the success of his business.

However, CEO Cao was very reluctant to allow unions in the plant. The Chinese managers were very concise that they would not allow the development of workers’ unions. This resolute was repugnant with the USA employment culture, which firmly believed in the unions. CEO Cao spent close $ 1million on labor relation institute and union avoidance consultants in a bid to stop its workers from forming unions claiming that unions denied the employees the chance to address their managers directly. Another striking issue emerging from the documentary is the health and safety of workers. In the documentary, one employee is frequently seen working with hot glasses of close to 200 degrees Celsius, detrimental to health and safety. In such an environment, workers get injured, and there is the claim of poor chemical disposal, which threatens the employees.

Nevertheless, the documentary nicely depicts the cultural diversity between China and America and it emphasizes how managers can leverage this to create a more unified work environment and manage change. Cao managed the initial difficulties and brought the company on a solid growth trajectory.           

 

“This impressive book on change is an essential read for any professional manager who is serious about getting to
grips with the important issues of making change happen.”

Dr Jeff Watkins, former MSc Course Director, University of Bristol

“There has long been a need for a readable, practical but theoretically underpinned book on change which
recognizes a multiplicity of perspectives. I thoroughly recommend it.”

Professor Colin Carnall, Associate Dean, Executive Programme, Warwick Business School,
University of Warwick

“I’ll definitely be placing copies on a couple of desks at White City…”
Nicky Campbell, Presenter, Radio Five Live and BBC1’s Watchdog

“This book is a great resource for managers thrown into the midst of change who need to gain understanding of
what happens when you try to make significant changes in a business, and how best to manage people through it.”

Andy Newell, former Organizational Effectiveness Director, Allied Domecq plc

“I commend it highly. It has a good coverage of relevant theoretical work while at the same time giving plenty of
practical examples. It is written in an accessible style that engages the reader and it is full of useful ideas without

being overly prescriptive or formulaic.”
Philip Sadler, author and Vice President of Ashridge Business School

Making Sense of Change Management is the classic text in the field of change management. It is aimed at
anyone who wants to understand why change happens, and what needs to be done to make change a
welcome rather than a dreaded concept. However, this book is not a “one size fits all” simplistic panacea to
all change, whatever the circumstances. Instead, it offers considered insights into the many frameworks,
models and ways of approaching change and helps the reader to apply the right approach to each unique
situation. Topics include:

Written for academics and professionals alike, Making Sense of Change Management identifies and offers
explanations of all current models of change, as well as practical guidelines and examples showing the
reader why change can go wrong – and how to get it right.

Esther Cameron and Mike Green help organizations and executives to manage and lead change. They work
in both the private and public sectors and use a variety of coaching, consultancy and workshop interventions
to support organizational development. Mike tutors in Leadership and Change at Henley Management
College and Esther lectured on change management for the University of Bristol for ten years. Both are
established authors in the area of change and leadership and are co-authors of Making Sense of Leadership
(also published by Kogan Page).

Kogan Page
120 Pentonville Road
London N1 9JN
United Kingdom
www.koganpage.com

Kogan Page US
525 South 4th Street, #241
Philadelphia PA 19147
USA

I S B N 978-0-7494-5310-7

9 7 8 0 7 4 9 4 5 3 1 0 7

£27.50
US $45.00

Business and management

A complete guide to the models, tools
& techniques of organizational change 2nd edition

Esther Cameron & Mike Green

MAKING
SENSE OF
CHANGE
MANAGEMENT

M
A

K
IN

G
S

E
N

S
E

O
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C
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A
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G
E

M
A

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A

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E

M
E

N
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C
am

ero
n

&
G

reen

2nd
edition

ISBN: 978-0-7494-5310-7

• individual change;
• team change;
• organizational change;
• leading change;
• structural change;

• mergers and acquisitions;
• cultural change;
• IT-based process change;
• complex change;
• how best to implement change.

making sense change mana_aw:Layout 1 4/3/09 12:11 Page 1

i

Praise for the first edition of Making Sense of Change Management

‘I commend it highly. It has a good coverage of relevant theoretical work while at
the same time giving plenty of practical examples. It is written in an accessible
style that engages the reader and it is full of useful ideas without being overly
prescriptive or formulaic.’
Philip Sadler, author of a number of acclaimed business titles and former
chief executive of Ashridge Business School

‘I really enjoyed this book. I like the straightforward approach, the inclusion of the
author’s opinion and the insight provided by the case studies. This book will be
very useful for those business managers in my organization who need to prepare
themselves for tackling major organizational change.’
Andy Houghton, former Head of Organization Development, Retail
Direct, Royal Bank of Scotland Group

‘There has long been a need for a readable, practical but theoretically under-pinned
book on Change which recognized a multiplicity of perspectives. By combining the
behavioural, humanistic, organizational and cognitive perspectives and by helping
the reader make sense of what each perspective brings to understanding Change,
this book should help students and practitioners. By linking in work on personality
tests such as MBTI™ the book breaks new ground from a practitioner point of view
not least because these tests are widely used in practice. I thoroughly recommend it.’
Professor Colin Carnall, Associate Dean, Executive Programme, Warwick
Business School, University of Warwick

‘If you’re interested in successfully managing and leading change, then read this
book! It not only covers change from both the individual and organizational
perspective, but also increases the number of options available to you.’
Judi Billing, Director of IDeA Leadership Academy, Improvement and
Development Agency

‘Change is a huge thing wherever you work. The key is to make change happen,
and make it happen well – with everyone on side, and everyone happy. This book
provides an extremely stimulating and accessible guide to doing just that. There
are a few people at the Beeb who could do with this. I’ll definitely be placing copies
on a couple of desks at White City.’
Nicky Campbell, Presenter Radio Five Live and BBC1’s Watchdog

‘This book is a great resource for managers thrown into the midst of change, who
need to gain understanding of what happens when you try to make significant
changes in a business, and how best to manage people through it. The authors have
tackled a complex topic in a lively and engaging way, leading readers through the
maze of theory available and offering just the right amount of practical advice.’
Andy Newall, former Organizational Effectiveness Director, Allied
Domecq plc

‘This impressive book on change is an essential read for any professional
manager who is serious about getting to grips with the important issues of
making change happen.’
Dr Jeff Watkins, former MSc Course Director, Management Research
Centre, University of Bristol

‘This practical handbook, combining contemporary management theory with very
practical suggestions, is an indispensable tool for any manager involved in change
processes. And aren’t we all…’
Adriaan Vollebergh, Director, Corus Metal Services Europe

‘This is a book which lives up to its title. By combining a guide to the ideas of key
thinkers on change and useful tips for making change happen, it really does
provide a toolkit to help us to make sense of change. It is useful to see a focus on
the individual, team and organizational levels, and in particular, on the role of the
leader in the change process. It is written in a way that makes the book interesting
to read both at length as well as to dip into.’
Richard McBain, Director of Studies Distance Learning MBA, Henley
Management College

ii

iii

MAKING
SENSE OF
CHANGE

MANAGEMENT

iv

THIS PAGE IS INTENTIONALLY LEFT BLANK

A complete guide to the models, tools
& techniques of organizational change

Esther Cameron & Mike Green

MAKING
SENSE OF
CHANGE

MANAGEMENT

London and Philadelphia

2nd edition

v

vi

Publisher ’s note
Every possible effort has been made to ensure that the information contained in this book
is accurate at the time of going to press, and the publishers and authors cannot accept
responsibility for any errors or omissions, however caused. No responsibility for loss or
damage occasioned to any person acting, or refraining from action, as a result of the mate-
rial in this publication can be accepted by the editor, the publisher or any of the authors.

First published in Great Britain and the United States in 2004 by Kogan Page Limited
Reprinted 2004 (twice), 2005, 2006, 2007 (three times)
Second edition 2009

Apart from any fair dealing for the purposes of research or private study, or criticism or
review, as permitted under the Copyright, Designs and Patents Act 1988, this publication
may only be reproduced, stored or transmitted, in any form or by any means, with the prior
permission in writing of the publishers, or in the case of reprographic reproduction in accor-
dance with the terms and licences issued by the CLA. Enquiries concerning reproduction
outside these terms should be sent to the publishers at the undermentioned addresses:

120 Pentonville Road 525 South 4th Street, #241
London N1 9JN Philadelphia PA 19147
United Kingdom USA
www.koganpage.com

© Esther Cameron and Mike Green, 2004, 2009

The right of Esther Cameron and Mike Green to be identified as the authors of this work
has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

ISBN 978 0 7494 5310 7

British Library Cataloguing-in-Publication Data

A CIP record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication Data

Cameron, Esther.
Making sense of change management : a complete guide to the models, tools and

techniques of organizational change / Esther Cameron and Mike Green. — 2nd ed.
p. cm.

Includes bibliographical references and index.
ISBN 978-0-7494-5310-7

1. Organizational change–Management. 2. Teams in the workplace–Management. 3.
Reengineering (Management) 4. Information technology–Management. I. Green,
Mike, 1959- II. Title.

HD58.8.C317 2008
658.4?06–dc22

2008034689

Typeset by Saxon Graphics Ltd, Derby
Printed and bound in India by Replika Press Pvt Ltd

vii

Contents

Acknowledgements x

Introduction 1
Who this book is aimed at 2; The basic content of the book 3;
Why explore different approaches to change? 3; Overview of
structure 7; Message to readers 8

PART ONE: THE UNDERPINNING THEORY 9

1 Individual change 12
Introduction 12; Learning and the process of change 14;
The behavioural approach to change 19; The cognitive
approach to change 25; The psychodynamic approach to
change 32; The humanistic psychology approach to
change 40; Personality and change 50; Managing change in
self and others 53; Summary and conclusions 60

2 Team change 62
Introduction 62; What is a group and when is it a team? 63;
Why we need teams 65; The types of organizational teams 66;
How to improve team effectiveness 74; What team change
looks like 78; The leadership issues in team change 82;
How individuals affect team dynamics 86; How well teams
initiate and adapt to organizational change 91; Summary and
conclusions 95

3 Organizational change 97
How organizations really work 98; Models of and approaches
to organizational change 109; Summary and conclusions 134

4 Leading change 138
Introduction 138; Visionary leadership 142; Roles that leaders
play 153; Leadership styles and skills 159; Different leadership
for different phases of change 166; The importance of
self-knowledge and inner resources 173; Summary and
conclusions 178

PART TWO: THE APPLICATIONS 181
Strategic change process 182; Overview of structure 182

5 Restructuring 187
Reasons for restructuring 189; The restructuring process 190;
Restructuring from an individual change perspective: the
special case of redundancy 209; Enabling teams to address
organizational change 214; Conclusion 221

6 Mergers and acquisitions 222
The purpose of merger and acquisition activity 223; Lessons
from research into successful and unsuccessful mergers and
acquisitions 228; Applying the change theory: guidelines for
leaders 242; Summary 253

Contents

viii

7 Cultural change 255
Guidelines for achieving successful cultural change 259; Case
study one: aligning the organization 262; Case study two:
rebranding the organization 268; Case study three: creating
an employer brand 275

8 IT-based process change 281
Strategy and IT 284; The role of IT management 287;
The need for IT change managers 292; Achieving process
change 296; Changing the information culture 303;
New rules for a new age 305; Summary and conclusions 306

PART THREE: EMERGING INQUIRIES 309

9 Complex change 310
Introduction 310; When is change complex? 311;
Understanding how complexity science applies to
organizational change 312; Tools that support complex
change 321; The role of leaders in complex change 327;
Summary and conclusions 330

10 The right way to manage change? 331
Introduction 331; What the research says 332;
Different approaches to getting ready for change 338;
Leading change 343; How do you know whether change is
working? 345; Summary and conclusions 349

Conclusion 351
The importance of peripheral vision 351; Finding the space to
reflect 352; How to get in touch with the authors of this
book 353

References 354
Index 363

Contents

ix

Acknowledgements

We want to start by acknowledging the many people in organizations
with whom we have worked over the years. You are all in here in some
shape or form! We have worked with many generous, courageous and
inspiring managers of change who we thank for the privilege of working
alongside them to make real change happen. Without these experiences
the book would be a dry catalogue of theory, devoid of life and character.

Then of course there are our colleagues who challenge and support us
every day as we reflect on our work, and make decisions about what to
do next. Particular thanks go from Mike to Andy Holder, Mhairi Cameron,
Philip Darley and Tim Hockridge, who probably do not know how much
they are appreciated, and to colleagues and MBA students at Henley
Management College for a never-ending supply of ideas and challenges.
Esther wants to specially acknowledge Anne-Marie Saunders and Alex
Clark for their wisdom, humour and friendship, and their generosity in
sharing their expertise. Many of their ideas and thoughts are embedded
in this book. Also, thanks go to Esther ’s learning set who have been a
source of strength throughout the last few years, and who really boosted
the leadership chapter in particular. Thanks too to Bill Critchley for his
ideas on linking metaphor and change, which form the bedrock of the
organizational change chapter.

x

Really special thanks go to Ailsa Cameron for her wonderful pictures,
which soften the pages so beautifully.

We also want to thank from the bottom of our hearts the hard-working
reviewers who squeezed the time out of their busy agendas to read draft
versions of these chapters. Special thanks go to Louise Overy, Steve
Summers, Duncan Cameron, Mervyn Smallwood, Peter Hyson and
Richard Lacey for their timely and thoughtful suggestions throughout the
iterative process of writing the book.

Our families have helped too by being very patient and supportive. So
love and thanks to Jane, Lewin, Oliver and Brigit. Love, and thanks too to
Duncan, Ailsa, Ewan and Katka.

We also want to thank each other. We have learnt a lot from this rich
and sometimes rocky process of writing a book together. We do not
always see things the same way, and we do not work from an identical set
of assumptions about change, so the book is the culmination of much
healthy airing of views. Let’s hope we are still writing, talking and
enjoying each other ’s company many years from now.

Note: The Myers-Briggs Type Indicator™ and MBTI™ are registered trade-
marks of Consulting Psychologists Press. Anyone interested in knowing
more about Myers-Briggs should contact Consulting Psychologists Press
in the US (800-624-1765) and OPP in the UK (08708 728 727).

Acknowledgements

xi

THIS PAGE IS INTENTIONALLY LEFT BLANK

xii

Introduction

I balance on a wishing well that all men call the world.
We are so small between the stars, so large against the sky,

and lost amongst the subway crowd I try and catch your eye.

L Cohen

This book is about making sense of
change management. The world we live
in continues to change at an intense
rate. Not a day goes by, it seems,
without another important discovery or
boundary-pushing invention in the
scientific fields. The economics of glob-
alization seems to dominate much of
our political and corporate thinking,
while the shadow side of globalization –
refugees, exploitation, terrorism and the

like – develops at an equally alarming pace.
The rate of change and discovery outpaces our individual ability to

keep up with it. The organizations we work in or rely on to meet our

1

needs and wants are also changing dramatically, in terms of their strate-
gies, their structures, their systems, their boundaries and of course their
expectations of their staff and their managers.

WHO THIS BOOK IS AIMED AT

Making Sense of Change Management is aimed at anyone who wants to
begin to understand why change happens, how change happens and
what needs to be done to make change a more welcoming concept. In
particular we hope that leaders and managers in organizations might
appreciate a book that does not give them the one and only panacea, but
offers insights into different frameworks and ways of approaching
change at an individual, team and organizational level.

We are mindful of the tremendous pressures and priorities of practising
managers – in both the private and the public sector – and Making Sense
of Change Management is our attempt at making their lives that little bit
easier. It is also our attempt at convincing them that addressing the issues
that cause change to be so poorly managed in organizations will lead not
only to more satisfying experiences for them, but to more fulfilling lives
for their staff.

Framework: an essential supporting structure;
Model: a simplified description of a system;
Tool: a thing used in an occupation or pursuit;
Technique: a means of achieving one’s purpose.

Concise Oxford Dictionary

Students of learning – be they MBA or MSc programme members, or indi-
viduals who just want to do things better – will hopefully find some
models, tools and techniques which bridge the gap between the purely
academic and the more pragmatic aspects of management theory and
practice. The intention is to help them to make sense of the changes that
they will undergo, initiate and implement.

Making sense of change management

2

THE BASIC CONTENT OF THE BOOK

We focus our attention on individual, team and organizational change
with good reason. Many readers will be grappling with large-scale
change at some point, which might be departmental, divisional or whole
organizational change. Whatever the level or degree of organizational
change, the people on the receiving end are individual human beings. It
is they who will ultimately cause the change to be a success or a failure.
Without looking at the implications of change on individuals we can
never really hope to manage large-scale change effectively.

In addition, one of the themes of organizational life over recent years
has been the ascendancy of the team. Much of today ’s work is organized
through teams and requires team collaboration and team working for it to
succeed. Very little has been written about the role of teams in organiza-
tional change, and we have attempted to offer some fresh ideas mixed
with some familiar ones.

A thread running through the book is the crucial role of leadership. If
management is all about delivering on current needs, then leadership is all
about inventing the future. There is a specific chapter on leadership, but
you will find the importance of effective leadership arising throughout.

In some respects the chapters on individual, team and organizational
change, together with the chapter on leadership of change are free-
standing and self-contained. However, we have also included application
chapters where we have chosen a number of types of change, some of
which, no doubt, will be familiar to you. These chapters aim to provide
guidelines, case studies and learning points for those facing specific orga-
nizational challenges. Here the individual, team and organizational
aspects of the changes are integrated into a coherent whole.

For this new edition we have added two new chapters, one on managing
complex change and one on whether there’s a single ‘right’ way of
managing change.

WHY EXPLORE DIFFERENT APPROACHES TO CHANGE?

Managers in today ’s organizations face some bewildering challenges.
Paul Evans (2000) says that 21st century leadership of change issues is not
simple; he sees modern leadership as a balancing act. He draws our atten-
tion to the need for leaders to accept the challenge of navigating between

Introduction

3

opposites. Leaders have to balance a track record of success with the
ability to admit mistakes and meet failure well. They also have to balance
short term and long term goals, be both visionary and pragmatic, pay
attention to global and local issues and encourage individual account-
ability at the same time as enabling team work.

It is useful to note that while some pundits encourage leaders to lead
rather than manage, Paul Evans is emphasizing the need for leaders to
pay attention to both management and leadership. See the box for a list
of paradoxes that managers at Lego are asked to manage.

THE 11 PARADOXES OF LEADERSHIP THAT HANG
ON THE WALL OF EVERY LEGO MANAGER

• To be able to build a close relationship with one’s staff, and to keep a
suitable distance.

• To be able to lead, and to hold oneself in the background.

• To trust one’s staff, and to keep an eye on what is happening.

• To be tolerant, and to know how you want things to function.

• To keep the goals of one’s department in mind, and at the same time
to be loyal to the whole firm.

• To do a good job of planning your own time, and to be flexible with
your schedule.

• To freely express your view, and to be diplomatic.

• To be a visionary, and to keep one’s feet on the ground.

• To try to win consensus, and to be able to cut through.

• To be dynamic, and to be reflective.

• To be sure of yourself, and to be humble.

Source: Evans (2000)

We believe that anyone interested in the successful management of
change needs to develop the ability to handle such paradoxes.
Throughout this book we offer a range of ideas and views, some of which
are contradictory. We would urge you to try to create a space within your-
self for considering a variety of perspectives. Allow your own ideas and
insights to emerge, rather than looking for ideas that you agree with, and

Making sense of change management

4

discarding those you do not care for. It is highly probable that there is
some merit in everything you read in this book!

With so many choices and so many dynamic tensions in leadership,
how does a manager learn to navigate his or her way through the maze?
We have developed a straightforward model of leadership that acts as a
strong reminder to managers that they need to balance three key
dimensions. See Figure 0.1.

Managers usually learn to focus on outcomes and tangible results very
early on in their careers. This book is a reminder that although outcomes
are extremely important, the leader must also pay attention to underlying
emotions, and to the world of power and influence, in order to sustain
change and achieve continued success in the long term. Leaders of
change need to balance their efforts across all three dimensions of an
organizational change:

Introduction

5

Outcomes
Developing and delivering

business outcomes

Emotions
Enabling people &

culture to adapt

Interests
Mobilizing influence,
authority and power

Organizational
context

Personal
leadership

Figure 0.1 Three dimensions of leadership
Source: developed by Mike Green, Andy Holder and Mhairi Cameron

• outcomes: developing and delivering clear outcomes;

• interests: mobilizing influence, authority and power;

• emotions: enabling people and culture to adapt.

Leaders are at the centre of all three. They shape, direct and juggle them.
One dimension may seem central at any time: for example, developing a
strategy. However, leadership is about ensuring that the other dimensions
are also kept in view. The three balls must always be juggled successfully.

In our experience, if you as leader or manager of change are unaware
of what is happening (or not happening) in each of the three dimensions
then you will have ‘taken your eye off the ball’. Your chances of
progressing in an effective way are diminished.

The early chapters of this book give the reader some underpinning
theory and examples to illustrate how people initiate change and react to
change at an individual level, when in teams, or when viewed as part of
a whole organization. This theory will help managers to understand what
is going on, how to deal with it and how to lead it with the help of others.

Making sense of change management

6

In
tr

od
u

ct
io

n

C
h

ap
te

r
1

C
h

ap
te

r
2

C
h

ap
te

r
3

C
h

ap
te

r
4

In
tr

od
u

ct
io

n
P

ar
t

2

C
h

ap
te

r
5

C
h

ap
te

r
6

C
h

ap
te

r
7

C
h

ap
te

r
8

In
tr

od
u

ct
io

n
P

ar
t

3

C
h

ap
te

r
9

C
h

ap
te

r
10

Type of change In
d

iv
id

u
al

Te
am

O
rg

an
iz

at
io

n
al

L
ea

d
in

g
ch

an
ge

R
es

tr
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ct
u

ri
n

g

M
&

A

C
u

lt
u

re

IT
p

ro
ce

ss

C
om

p
le

x
ch

an
ge

R
ig

h
t

w
ay

Individual xxx x x xx x x x x

Team xxx x x xx x x x x

Organizational x x x xxx x x xx xx xx xx xx xx

Leading change x x x x xxx xx x x x xx

Table 0.1 Where to read about individual, team,
organizational change and leading change

The later chapters take real change situations and give specific tips
and guidelines on how to tackle these successfully from a leadership
point of view.

OVERVIEW OF STRUCTURE

We have structured the book principally in three parts.
Part One, ‘The underpinning theory’, comprises four chapters and

aims to set out a wide range of ideas and approaches to managing
change. Chapter 1 draws together the key theories of how individuals go
through change. Chapter 2 compares different types of team, and exam-
ines the process of team development and also the way in which different
types of team contribute to the organizational change process. Chapter 3
looks at a wide range of approaches to organizational change, using orga-
nizational metaphor to show how these are interconnected and related.
Chapter 4 examines leaders