Organizational Change Research

A vital indicator of the need for change is a leadership change. 2005, Disney replaced Michael Eisner with Robert Iger (Disney, 2013). The replacement was motivated by external business environment changes, which led to a few organizational failures. A new CEO was expected to adopt a new operational model that responds to change.

Another indicator of change awareness is the acquisition or merging of other businesses. Mergers and acquisitions present a perfect opportunity for growth (Johnston, 2019). The exercise only involves a change of a business logo, while other activities go on as usual, thus presenting a business with an opportunity to expand. Disney has acquired and merged with many companies, including the 21st Century Fox, ABC, and Marvel Entertainment (Johnston, 2019).

Johnston, M. (2019). Top 5 Companies Owned by Disney (DIS). Investopedia. https://www.investopedia.com/articles/markets/102915/top-5-companies-owned-disney.asp

Rhydderch, M. (2004). Organizational change theory and the use of indicators in general practice. Quality and Safety in Health Care, 13(3), 213–217. https://doi.org/10.1136/qshc.2003.006536

• A collaborative leadership strategy creates change awareness among organizational leaders. Disney Company has embraced a comprehensive change strategy since 2005 (Udokang, 2021). One of the strategies implemented to achieve this was the integration of internal CEOs. The integration sought to end the rivalry between the company’s leadership and the executives of other companies. Disney’s managers can access crucial data from other companies, which they can use to implement organizational changes. The change has since allowed the company to align with the external environment.
• Awareness of change also helps employees to innovate. Disney Company adopted the horizontal organizational design to spur employees’ innovative power (Udokang, 2021). The plan was meant to keep up with changes in the modern world. The horizontal organizational structure gives employees more control power, enabling them to make critical autonomous corporate decisions. It is a non-hierarchical system, which means employees do not have to answer to management when performing every task. Such a change management system has been beneficial during the Internet era and globalization. Junior employees can independently innovate while upholding accountability and trust.
• Besides, Disney has a vast financial muscle, giving them an edge when negotiating with suppliers. Disney exploited their economic power to gain a competitive advantage in its industry (Yie, 2021). The company has created creative content, expanded globally, and created technological innovations due to the substantial financial muscle at its disposal. These factors make a disruptive force in any market, and Disney uses them to drive change.

Yie, C. E. (2021). In the Study of Leadership and Change Management of Walt Disney: Linking Theory to Application. The International Journal of Business & Management, 9(8). https://doi.org/10.24940/theijbm/2021/v9/i8/bm2108-031

Besides, customer complaints have been one of the reasons for the implementation of specific change initiatives. When customers complain about their experience with the company’s products, such complaints often drive change (Lunenburg, 2010).

A large organization like Disney also involves external consultants when implementing change. These outside players are not connected to culture, politics, or traditions. As a result, they can implement change without referencing the status quo. They are a breath of fresh air as far as evolution is concerned (Lunenburg, 2010).