Not Too Much Change, Not Too Little for a Business to Evolve Successfully

To evolve successfully, a company needs the right blend of both change and stability. Too little change can leave a company stagnating, especially when business has flattened or is eroding. But, too much change can be just as harmful, or even more so. That’s why businesses that evolve by building upon their strengths are generally the most successful, according to my research. That means not too much change and not too little.

Meg Whitman, CEO of Hewlett-Packard, did a good job of describing this in a recent Wall Street Journal article (H-P Shows Age with Layoffs, May 24, 2012). The article, which announced a major layoff, told of Ms. Whitman’s intent for the company. The article quoted Ms. Whitman who said she seeks to “strike that appropriate balance between the amount of change that is necessary to position H-P for the future and the amount of change that the organization can absorb.”

In light of my research into business success patterns, Ms Whitman’s overall approach in trying to strike that balance is on the right track, although Hewlett-Packard’s performance will depend upon what changes the company ultimately does make. Nonetheless, the right balance between change and stability characterizes how companies evolve successfully, and that is apparently what Ms. Whitman is striving for at H-P.

Ms. Whitman’s intent for H-P is particularly commendable because so many companies react to adverse market conditions by making too many changes, by making changes that are too drastic, or by doing both. As a result of too much change, these companies not only fail to achieve the desired performance improvements, but they often also make their current lackluster results much worse. By aiming to strike a balance between the change needed to position the company for the future and the change that can be absorbed, Ms. Whitman is wisely avoiding a common mistake that so many companies make.

So, now that she is avoiding the ever so common too much change misstep, Ms. Whitman and her team have to identify and implement changes suitable for H-P. Guided by Whitman’s plan for a balanced approach, the right changes must be made if H-P is to succeed.

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