Shapes of organizational change: the case of Heineken Inc.

Abstract

This paper is based on the punctuated equilibrium model of organizational change. We argue that there are multiple ways in which organizational change takes place. More in particular, by looking at the interaction between the two types of organizational change (radical and incremental), we identify two shapes of organizational change. We illustrate this by means of a case study of a large, Dutch beer‐brewing company. The study focuses on a major change in the distribution system of beer and a period of structural inertia, caused by long CEO tenure. The problems associated with the subsequent CEO succession and the different levels of management that interact in these change processes are also discussed. This leads to the identification of a number of drivers and determinants of shapes of organizational change.