Choosing Strategies for Change

Leonard A. Schlesinger; John P. Kotter

Article | Harvard Business Review | March–April 1979

Choosing Strategies for Change

by Leonard A. Schlesinger and John P. Kotter

Abstract

"From the frying pan into the fire," "let sleeping dogs lie," and "you can't teach an old dog new tricks" are all well-known sayings born of the fear of change. When people are threatened with change in organizations, similar maxims about certain people and departments are trotted out to prevent an alteration in the status quo. Fear of change is understandable, but because the environment changes rapidly, and it has been doing so increasingly, organizations cannot afford not to change. One major task of a manager, then, is to implement change, and that entails overcoming resistance to it. In this article, the authors describe four basic reasons people resist change. They also describe various methods for dealing with the resistance and provide a guide to what kinds of approaches will work when the different types of resistance occur.

Keywords: Organizational Change and Adaptation; Strategy; Change Management;

Format: Print

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Schlesinger, Leonard A., and John P. Kotter. "Choosing Strategies for Change." Harvard Business Review 57, no. 2 (March–April 1979).

Case | HBS Case Collection | July 2005 (Revised August 2017)

The U.S. Current Account Deficit

Laura Alfaro, Rafael Di Tella, Ingrid Vogel, Renee Kim, Matthew Johnson and Jonathan Schlefer

Investors and policymakers throughout the world were confronted with the risk of painful economic consequences arising from the large U.S. current account deficit. In 2007, the U.S. current account deficit was $731 billion, equivalent to 5.3% of GDP. The implications of the deficit were debated with intensity. At one extreme, it was argued that large deficits would eventually resolve themselves smoothly, even if they persisted for many more years. Former Federal Reserve Chairman Alan Greenspan was among those expecting a "benign resolution to the U.S. current account imbalance." Other analysts, such as economists at the World Bank, believed the large deficits raised the risk of a sharp and disorderly fall of the dollar and that necessary macroeconomic adjustment could be painful, for the United States as well as for the rest of the world. The Financial Times asked: "How long will foreigners be prepared to make such generous 'gifts' to the US?" In this environment, Berkshire Hathaway, run by legendary investor Warren Buffett, postulated that current account imbalances would lead to "some chaotic markets in which currency adjustments play a part" and announced to shareholders a plan to increase investment in overseas companies to protect against this risk. It remained to be seen what the short- and long-term implications of the current account deficit would ultimately yield.

Keywords: Macroeconomics; Borrowing and Debt; Currency; Foreign Direct Investment; Business and Government Relations; United States;

Citation:

Alfaro, Laura, Rafael Di Tella, Ingrid Vogel, Renee Kim, Matthew Johnson, and Jonathan Schlefer. "The U.S. Current Account Deficit." Harvard Business School Case 706-002, July 2005. (Revised August 2017.) View Details

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