The Reorganization of Power: Radical Change in Professional Service Firms

In this paper, we examine the role of power in radical organizational change. Drawing on a study of change in three professional service firms, we develop a model of change in which power plays a central and defining role. Our study suggests that when organizations experience an environmental shock that affects the core of its activities, the process of radical change will often begin with the reorganization of power in the organization. We also argue, based on this study, that a reorganization of power will primarily shift power either toward specific actors (actor-focused reorganizations) or toward specific systems (system-focused reorganizations), but not both. Finally, our study suggests that radical change will be most successful (most likely to effect deep, sustained organizational change) when reorganizations of power occur that alternate between actor-focused and system-focused shifts.