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This document summarizes organizational theories that can be applied to understand the failure of Borders Bookstores. It discusses: 1) Autopoiesis theory which views organizations as closed systems that reference only themselves, conserving their identity. Borders ignored changes in its corporate identity. 2) Chaos and complexity theory which sees patterns emerging from self-organization. Borders stayed with dominant mindsets rather than adapting to e-books. 3) Mutual causality theory where feedback loops cause change. Borders' growth created unsustainable levels reinforced by positive loops. 4) Dialectical change theory sees change resulting from tensions between opposites. Borders embraced a polarized view of the internet rather than adapting.
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- 1. Organizational Analysis Patrick Pettyjohn Shelley Stephen Mengyuan Zhao September 20, 2011 R621 – Dr. Cho Flux and transformation
- 2. Part 1 – Define Major Logics of Change Part 2 – Illustrate Logics through Borders Failure Part 3 - Demonstrate Logics Use in Needs Analysis Theoretical basis and paradigm characteristics
- 3. Autopoiesis Theory Borders Bookstores Started as homey, but large, bookstore in Ann Arbor, MI, staffed by book lovers. Hired non-book people and narrowing selection without recognizing corporate identity change. Relationship between systems and their environments “all living systems are organizationally closed, autonomous systems that reference only to themselves”. ----Maturanaand Varela Closure (Self-reference) Autonomy Conserve identity
- 4. Chaos and Complexity Theory Borders Bookstores Attractor of e-books readers ignored Stayed with more dominant attractors - established mindsets and power bases Tried surviving as discrete corporate entity Patterns of activity can emerge from spontaneous self-organization Randomness, diversity, instability Attractors Patterns
- 5. Mutual Causality Theory Borders Bookstores Good results with continuous expansion through the early 2000’s reinforced positive feedback loop. Achieved a level of growth that was unsustainable. Change is enfolded in the strains and tensions found in circular relations Positive and negative feedbacks loops Contextual analysis
- 6. Dialectical Change Theory Borders Bookstores Opened a website for 2 years, sold it to Amazon, did not open another for 10 years. Decision to not be an internet player embraced a polarized view rather than finding a way to live in internet world. Change is the product of tensions between opposites Opposing and contradicting forces in Taoism and Marxian Thinking Innovation as “creative destruction”
- 7. Needs Analysis & Organizational Flux Change is AWAYS possible! Establish the source of performance gap Internal of the organization. Internal of the organization’s closed self identifying system (i.e., market)
- 8. Gain Insider Perspective Uncover, codify, make explicit, & reconstruct the factors which make up the closed self-identify system.
- 9. Make Explicit which is Implicit Negotiate with the client for acknowledgement of the organization's current self-identifying system.
- 10. Moving toward a solution Once the client and organization come to agreement of the current organization’s self-identifying system the NAC can do the following: Measure the costs, strength, and influence of each attractor within the self identifying system. Conduct a series of thought experiments: How would a new attractor reshape the current system? Analyze the cost & benefits for anticipating new market trends.
- 12. At what point does an organization’s sacred cow (self-defining, and motivating vision based on previous system identifiers) become a mad-cow (malignant, diseased or outdated)?
- 13. How would you conduct a needs analysis if you didn’t have access to the balance sheets, or C-level executives?
Notas do Editor
- Lost its identity - started as a homey, but large, bookstore in Ann Arbor, MI run by book lovers.Began hiring non-book people and narrowing selection gradually. Corporate identity still thought it was maintaining the bookish façade. True 'bookies' realized the change was happening.http://articles.cnn.com/2011-09-12/us/first.borders.bookstore.closing_1_borders-rewards-bookstore-woolworth?_s=PM:US'The death and life of great American bookstore'September 12, 2011 By Todd Leopold, CNN
- Shows resistance to change to new book formats such as e-books - being led by a more dominant attractor - established mind sets and power bases, tried to survive as a discrete corporate identity rather than adapt. http://articles.cnn.com/2011-09-12/us/first.borders.bookstore.closing_1_borders-rewards-bookstore-woolworth?_s=PM:US'The death and life of great American bookstore'September 12, 2011 By Todd Leopold, CNN
- http://articles.cnn.com/2011-09-12/us/first.borders.bookstore.closing_1_borders-rewards-bookstore-woolworth?_s=PM:US'The death and life of great American bookstore'September 12, 2011 By Todd Leopold, CNN
- Not an internet player About 10 years ago, Borders handed its internet operations to Amazon and did not relaunch it's own website until 2008. One Chapter Closes... --- Passing of Borders Is Serious Drama For Readers, Authors and Publishers By Mike Spector and Jeffrey A. Trachtenberg 918 words 20 July 2011Embraces one pole completely - no prescence - rather than finding middle ground.
- What advantage/s does a need analysis team have by conceptualizing organizations as closed systems of self identify parts in constant flex?No matter how young or old the company is, change is always possible, but no organization operates in complete isolation, but always in flux within a complex system. For this reason, the needs analysis team needs to understand and locate the source of the performance gap. The performance gap is likely to be generated within the walls of the company, but not always. This is important to understand because a company potentially could be doing everything right, but working efficiently in the wrong direction. For example: The market may have changed, shifted, a new attractor has become known that hasn’t been capitalized. By understanding the sources of the performance gap, needs analysis team can pinpoint the source of the performance gap while also helping an organization understand itself better while also gaining better insight into their current market.
- Now, how does one gain access to how a company identifies itself, and locate each part within the system. As this comic represents all the things that make up a company’s identity, 1. Their place in the market, 2. theirs sales tracked over that last quarter, 3. profit margins, 4. new initiatives, R&D 5. new government policy. In addition, a company is defined by its competition. who are the company’s main competitors, they also represent who the company is trying not to be, or trying to fend off. We are who we are by who were not. We can gain access to this information online, about the market, and its competitors. Then you can gain a more fine grained look at the company’s identity by looking at the company’s balance sheets. These records are detailed identifiers of who and what the company wants to become. Where they are spending and gaining money! Lastly, it is always good to interview a cross section of the company, from C level executive to managers, to line workers.
- The last thing we want is people within blaming each other in isolation but to see they are connected to each other. In addition, it is worthless for the organization if the consultants are the only one who know how their client company identifies itself. Instead, we want the company to understand who they are and how they are always situated within a close system. The consultants needs to establish agreement with the organization concerning their network of relationships.
- Now that we have established agreement of the closed system of self identifying entities, and have diagramed the network we can establish if and where the source of the needs are. You can start assigning cost for maintaining certain relationships. Each link within the system costs something to maintain that link, either time, money, energy. Is there too much effort maintaining a relationship that could be outsourced somewhere else., or is there too little effort put maintain vital relationships? You and the organization can conduct a service of through experiments. You can add a certain attractor, and play out how that might potentially change the market…Helping a company understand who it is, is essential in identifying performance gaps,…and potentially help a company avoid some of the same mistakes Boarders experienced.