Abstract

The author offers a modification and extension of existing organizational transformation approaches by drawing on values-oriented and stakeholder management paradigms currently popular in literature. Many of the current values-based change paradigms offer vague guidance as to how to actually create, implement and sustain a strategically and operationally excellent organization as an extension of a stakeholder-based cultural mindset. Sharing the belief that organizations should be operationally and strategically sound in addition to being stakeholder centred, the suggestions presented represent an attempt to combine the altruism of stakeholder-based management with practical organizational transformation theory to suggest steps for transformation. The approach suggested here, which places a primary emphasis on the organization's moral standing from the individual employee's perspective, is also supported by existing literature on the need for values congruence between organizations and individuals. Thus, the paper's central premise is that organizational transformation, commonly called OT, should begin with a cultural transformation, aimed at raising the level of moral reasoning of the firm as a necessary precursor to a subsequent operational and strategic transformation.