Resistance to Change and the Integration of Competitive and Organizational Strategy -- Michael Jensen and Joe Fuller

Breaking the Code of Change II, Rotman School of Management, August 2-3, 2000

These participant's notes were created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. These should not be viewed as official transcripts of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. These notes have been contributed by David Ing ( at the IBM Advanced Business Institute (

Michael Jensen, Harvard Business School, and Joe Fuller, Monitor Group.

Taught a class on organizational strategy, haven't bridged with Michael Porter.

Proposition: we organize everything for security.

Over 25 years, technological and political revolutions which make the markets much more intrusive into businesses.

Have thought about 3 limits to change:

1. Hidden commitments:

2. Invisible process:

3. Dualistic model: people are active in one of two models at any point of time.

Implication: Can't always count on people acting in their own self-interest.

New respect for markets: they are a control on this type of behavior, as new entrants will come in.

Can now use group devices to help on this weak brain: religion, law

Three principles to deal with this.

What he and Meckling didn't understand, when then did agency theory research:

Roger Martin: Why to horror movies sell so well? Training to strengthen.

Dimasios (Iowa) testing card games for money, one deck unfair and one fair.


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