Navigating Conflicting Influences During Complex Strategic Changes: The Contribution of Diagnosis, Congruence, and Leadership

Abstract

This study explored how managers implement complex strategic changes with multiple, often conflicting, influences and initiatives. A large, regional operating division of a French electrical utility was implementing a top-down, enterprise-wide digital transformation and developing broad agile capabilities in a participative way. Conclusions from the 18-month collaborative research effort suggest that three change activities made pragmatic and theoretically insightful contributions. First, diagnosis – a process not integrated in theories of strategic change and adaptation – served as a powerful source of tailored solutions that orchestrated diverse change activities. Second, the organization's existing culture and identity – typically considered a target of or constraint to change – became an important source of change congruence. Third, managers collectively leveraged and re-framed hierarchical authority in leading the change. Exercising authority in traditional ways kept emerging changes safe. Reframing authority as the power to convene conversations helped to focus expertise on key issues.