Changing Organizations for a Knowledge-Economy

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Operating in the waves of sound changes in financial markets such as real estate services and facilities management companies leaves organizations being impulsive and unsure of the future. In an effort to prepare for ever changing world, organizations must devise strategies that respond to changes and maintain business activities. In spite of the constant changes surrounding businesses, few people are prepared to adapt and respond to what faces their organizations. During the 1990s, the American financial sector and maturing industrial sectors experienced tremendous change. These changes included the products diversification, increased competitive market place, call center services, credit cards, and capital management. In an attempt to conform with the changing business model, most organizations adopted the Malcolm Criteria. On its part, Corporate Real Estate (CRE) developed management practices that are required for organizational changes. This paper analyses and provides recommendations of the strong and weak position in relation to human dynamics that relates to changes and CRE prescribed organizational changes.

Strong Points

CRE was structured to render facilities transaction and real estate (disposition, acquisition, property management, and construction) thus, could not align with a new set of changes introduced by Malcolm. CRE opted for designing a new version that created functions such as business management and relationship management that could lead to the successful functioning of the organization. Matrix business model enabled organizations to gain operational, customer, and strategic goals. The model enabled employees to gain skills and apply for job positions that required minimum criteria. Ascending up in the ladder was quick and efficient as employees in CRE went through an intensive interview resulting to remarkable changes.

The CRE model was thoroughly researched prior its release in the market; thus, reliable to most organizations. Managers and leaders of CRE organized for the training session that taught members change management, theory of human transitions, and change in management practices. The CRE team was enthusiastic in enumerating three sequential and distinctive phases that people experienced while undergoing changes. The three crucial phases in the process of change in organization include endings, neutral zone, and beginnings. CRE team argued that ending phase is the under appreciated step that involves letting go of the present reality. Usually, workers cannot learn new business tips and ideas until they let go that, which they are aware of and holds. Although letting go of what an employee hold is psychological and emotional, it is imperative for the process to take place. CRE managers stress that organizational changes develop the need to release the physical, emotional, and physical attachment. A brilliant plan developed by CRE team namely transition management plan (TMP) allows leaders and employees in the process of change. Neutral zone, which is the second phase, is often the most difficult and longest to the company. The process is critical to the leaders as they have to adapt on relating with workforce while going through the change process.

Fear generates confusion, guilt, and uncertainty; thus, affecting workforce in the process of transitional change. Another strong and cogent point about this stage is the need for the manager to learn and nurture several organizational frameworks. CRE argues that managers must recognize the difficulty of the stage to the team, develop temporary structures, and strengthen inter group relations. The last phase is more psychological and starts when the company starts to grasp the positive aspect and values associated with the change. Success in this phase is attributed to the ability of leaders to communicate consistently, reward employees, and exhibit exemplary behaviors.

Weak Points in the Process of Change

In the process of change as noted in the neutral zone, human emotions dominate workers’ ability to adopt to new changes leading to confusion, guilt, uncertainty, and fear. Employees are not certain what the future holds, new job requirements, and the impact of the new roles. In this phase, when the managers are unable to interact with employees through communication and messages, employees become less productive. Since leaders have access to vital information, it is their duties to relay such information in a timely comportment to evade bewilderment and difficulties in the change process. Major shortcomings of neutral zone as developed by CRE team are that employees focus more on the past and future ignoring the present. At this point, the company becomes susceptible to outside forces where people from outside may opt to offer suggestion and the way forward in regard to the challenges, in the organization. In scenarios where the entire company undergoes radical changes, hostility prevails, and acquisition of the organization’s shares becomes inevitable. Failure by the managers to define what must be done over what must not lead to employees making their individual decisions. Employees usually tries to do everything by incorporating all ideas; thus, affecting the business operations.


Changes in business operations are bound to occur; thus, organizational strategies, goals, and polices are supposed to accommodates future changes. CRE provides three phases that are associated with the process of change in organization. The effectiveness of these critical phases depends on the ability of the managers and leaders to apply knowledge and ideas in each stage. The neutral stage is the most damaging, difficult, and longest phase in the process of change. This phase present challenges to leader when attempting to orient employees about the changes experienced. Since the employees are worried of the new job roles and their ability to face the future, managers and leader should take time, in training workers on the new job responsibilities. Concerns over future uncertainty must be critically addressed as they inflict emotional pain to employees; thus, affecting the current performance. The capability to progress on to the subsequent phase depends on employees’ roles in organization and the availability of information regarding changes. Further, ability to move to beginning stage depends on employees’ ability to influence or control their personal experience. Therefore, it is paramount that the leaders who have access to confidential information shares such information with workers in a timely manner. Workers’ personal experience and ability to adjust to new changes is crucial in overcoming myriad of challenges in these stages. Employees who experience personal problems must be assisted by organizational leaders in fixing the issues.


Organizations are constantly confronted by eternal forces and changes that affect the organization operations. Despite the uncertainty of the change process, few leaders and managers are primed to handle unforeseen change in the market place. CRE devised a matrix mode that equips organizations with ideas on how to overcome the emerging changes. CRE matrix model introduced three essential phases in the process of change that include endings, neutral zone, and beginnings. This paper has analyzed pleasurable and critical points, in relation to organizational changes and provides a comprehensive recommendation to organizational changes.

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BusinessEssay. 2022. "Changing Organizations for a Knowledge-Economy." January 10, 2022.

1. BusinessEssay. "Changing Organizations for a Knowledge-Economy." January 10, 2022.


BusinessEssay. "Changing Organizations for a Knowledge-Economy." January 10, 2022.