CHAPTER SIXTEENOrganizational Change Management


Chapter 2 stated:

A major obstacle to adopting or successfully implementing performance improvement initiatives is cultural resistance to change. Another significant obstacle is that internal departments do not share information or collaborate. Combined, these two obstacles imply fear of being held accountable for results. A third obstacle is the executive team's policies and strategy are insufficiently communicated to their managers and employees.


As was described in Chapter 15, VBM requires information technology to deliver timely, valid, and reliable data on performance, costs, and risks to decision makers balancing considerations of results sought, resources allocated, and risks accepted. Data, technology, and the resulting management decision process thus all work together to deliver maximum stakeholder value. These methods and systems also enable good managers to become world-class leaders by ensuring that their organizations are focusing on the right things. As author Peter Drucker said, “Management is doing things right; leadership is doing the right things.”

A result of not understanding the distinction between management and leadership is that most organizations are overmanaged and underled. Distinguishing between leadership and management is essential to successfully implementing VBM. What is the distinction? Management's role is to cope with the ...

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