Memory loss? Corporate knowledge and radical change

Abstract

Purpose

The purpose of this article is to understand the impact of radical change initiatives such as large VEROs or RIFs on the organizational memory system (OMS), specifically the tacit and explicit knowledge held by individuals.

Design/methodology/approach

A qualitative case study design was used to explore and describe OMS in a securities industry organization that experienced radical change. Interviews, document analysis, and observation followed by thematic coding and analysis using Atlas.ti® software were used to collect and analyze data. A total of 16 organizational officers, directors, managers, and specialists participated in the interviews.

Findings

Findings suggest the same OMS devices were in use before, during, and after radical change initiatives occurred. However, the degree or proportion of use of these devices changed after the change initiatives. Overall, there was some loss of knowledge, but the loss appeared to have no effect on the organization's profitability.

Research limitations/implications

Findings suggest that certain factors (industry role, nature of the work, and the configuration of work groups) may have influenced the results. Other factors were a management team strongly committed to change, protention of thinking, and continuous communication. Through activities of sense‐making, succession planning, automation, and training, the organization managed to develop and increase the use of its memory system to retain knowledge as well as generate new knowledge.

Practical implications

This research provides information for practitioners who may be helping their organizations transform through radical change and are concerned about the potential loss of information and knowledge resident in organization memory systems.

Originality/value

This case study points to some important practical lessons and actions that can serve as a blueprint for how to manage radical organizational change and preserve the tacit and explicit knowledge aspects of organizational memory.

Citation

Scalzo, N.J. (2006), "Memory loss? Corporate knowledge and radical change", Journal of Business Strategy, Vol. 27 No. 4, pp. 60-69. https://doi.org/10.1108/02756660610677137