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Organizational Change: Understanding the Causes of Failure

The prime cause of failure is a form of self-deception by leaders. When contemplating reorganization, most benefits are tangible and can be estimated rather easily. If an organization merges with another company, their market share may increase. There may be new products to sell. These benefits are tangible and visible, but they may be overstated. On the cost side, things are not as precise. Costs can be reduced by cutting redundant staff, but failures in cultural integration can increase costs

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