INTERNAL AND EXTERNAL DRIVERS OF CHANGE – KEY FEATURES
Internal and External Drivers of Change – Key features
Introduction
Managing organizational change implies concentrating the internal efforts for adjusting to the ongoing evolution that the market imposes (Child, 2005). Optimizing internal human resources through relevant trainings, adapting the organizational structure to local environment or shifting the company’s business objectives for attaining performances (Segura, 2009) are the internal drivers of change that will be considered within this essay. On the other hand, external or outside change is generated by the economic, socio-cultural, political, legal or technological factors (Proehl, 2001). The internal and external drivers of change will be assessed on Ubisoft, a multinational gaming company.
The internal change drivers are linked with the companies’ internal objectives, strategies, sought performances, which can generate organizational shifts (Rogalski, 2011). Changes affecting organizations based on external factors define the external change drivers (Anderson & Ackerman Anderson, 2010).
Background
Created in 1986 in France by the Guillemot brothers, Ubisoft is currently one of the leaders of the worldwide gaming industry. Its success is owned to managing internal capabilities to meet the permanent external demands for maintaining its competitive positioning (ubisoftgroup, official website).
Internal Drivers for Change
With an impressive portfolio of games and franchises, Ubisoft has assured its growing leadership position by managing and investing in its internal human resources (Kitagawa, 2008), applying a glocalization approach for securing its position on its industry (Kirsten Blog, 2010) or redefining its business strategy for attaining performances (Zhou & Jing, 2013).
Managing Internal Human Resources
Ongoing trainings and career developmental programs are assured within Ubisoft’s studios for maintaining its competitive positioning (Ubisoftgroup, official website). Similarly, identifying and investing in new talents is another HR related strategy pursues for maintaining performances.
Glocalization Approach
What started out as a family organization, the company is currently pursuing a qualitative growing tactic through developing into glocalized subsidiaries, adjusting its multinational corporate guidelines, policies and working procedures to local business environments (Ubisoftgroup, official website).
Redefining Business Strategy
External Drivers of Change
The development of Ubisoft Group has seen various economic contexts, inclusively the recent economic crisis that affected its production, influencing the company to apply close down several studios, while concentrating on strengthening its main production sites) (Ubisoftgroup, “Financial Report 2010-2011”, 2011). Ubisoft adjusted its business model to each country’s regulations and politics and its products to each market’s specificities, while permanently aligning to the technological developments, which secured its performances.
Risk Analysis
- Regulatory changes in the countries where it activates;
- Foreign exchange risks (Ubisoftgroup, “Financial Report 2010-2011”, 2011).
Obstacles to Change
- Centralized management;
Conclusion
Ubisoft’s business vision and internal adaptability to the external change drivers assured its competitive position and its market performances. Human resource strategies, a local customization of its corporate values and strategic transformation of business vision were aligned with the economic, socio-cultural, political, legal and technological change drivers.
References
Anderson, D. & Ackerman Anderson, L., 2010, Beyond change management. San Francisco: Pfeiffer.
Child, J., 2005, Organization: contemporary principles and practice. Malden: Blackwell Publishing.
Kitagawa, K., 2008, Strategies for securing our future: explosive growth-Ubisoft’s IT future. Accessed on 10 January, 2014, retrieved from < http://www.conferenceboard.ca/e-library/abstract.aspx?did=2647 >.
Kristen’s Blog, 2010, Final reflection: global media. Accessed on 10 January 2014, retrieved from < http://kohlemeier.wordpress.com/ >.
Proehl, R., A., 2001, organizational change in the human services. London: Sage Publications, Inc.
Rogalski, S., 2011, Flexibility measurement in production systems. London: Springer-Verlag.
Segura, G., G., 2009, Organizational change. Michigan: ProQuest LLC.
Ubisoft Group. Official Website. Accessed on 10 January, 2014, retrieved from < https://www.ubisoftgroup.com/en-US/about_ubisoft/index.aspx >.
Ubisoft Financial Report 2010 – 2011, 2011, Rennes: Ubisoft Entertainment.
Zhou, S. & Jing, L., 2013, Changing the game. Accessed on 10 January 2014, retrieved from < http://europe.chinadaily.com.cn/epaper/2013-01/04/content_16079534.htm >.
