A System Dynamics Model of Planned Organizational Change

This paper suggests that an induction of change program leads to atemporary impairment of organizational performance. A System Dynamics Modelportrays the process of planned organizational change. A set of keyvariables that facilitate or impede change is identified, quantified, andintegrated into the model. Three data sets, reproduced by simulation,demonstrate that the model is internally consistent and empiricallyadequate. The paper discusses theoretical and practical implications of theinitial dip phenomenon in processes of planned change.