Two contrasting theories of change: Theory E and Theory O

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Antidote, The

ISSN: 1363-8483
Merged into: Strategy & Leadership

Online from: 1996

Subject Area: Strategy

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Document Information:
Title:	Two contrasting theories of change: Theory E and Theory O
Author(s):	Kippenberger, T
Citation:	Kippenberger, T, (2000) "Two contrasting theories of change: Theory E and Theory O", Antidote, The, Vol. 5 Iss: 7, pp.17 - 21
Keywords:	Management theory, Organizational change, Organizational structure
Article type:	Research paper
DOI:	10.1108/EUM0000000006873 (Permanent URL)
Publisher:	MCB UP Ltd
Abstract:	Proclaims that the hard approach (referred to here as theory E) is the creation of economic value/high returns to shareholders; and that the soft approach (theory O) sees organizations as having many stakeholders, developing employees and their loyalty. Posits that, for organizations to prosper, eventually, theory E must be joined with theory O. Uses an inset with some arguments about change. Gives an example of Asda trying to combine Theories E and O, although, because Wal-Mart bought Asda in 1999 for eight times its 1991 value, the Asda case could not be tracked over time.