chapter  6
22 Pages

ORGANIZATIONAL TRANSFORMATION AND THE BALANCED SCORECARD

THE PURPOSE OF THIS CHAPTER is to examine the nature of organizational transformation, how it occurs, and how it can be measured. Aldrich (2001) defines organizational transformation along three possible dimensions: as changes in goals, boundaries, and activities. According to Aldrich transformations “must involve a qualitative break with routines and a shift to new kinds of competencies that challenge existing organizational knowledge” (p. 163). He warns us that many changes in organizations disguise themselves as transformative, but are not. Thus, focusing on the qualifications of authentic or substantial transformation is key to understanding whether it has truly occurred in an organization. Technology, as with any independent variable, may or may not have the capacity to instigate organizational transformation. Therefore, it is important to integrate transformation theory with Responsive Organizational Dynamism. In this way, the measurable outcomes of organizational learning and technology can be assessed in organizations that implement ROD. Most important in this regard is that organizational transformation, along with knowledge creation, be directly correlated to the results of implementing organizational learning. That is, the results of using organizational learning techniques must result in organizational transformation.