Comparing William Beer's Theory E, And Michael Beer

As business adapt to fluctuations in the market and industry, leadership must employ strategies which will enable them to remain competitive. Several of these strategies have been studied, defined and detailed by several academics and identifying them as Change Theories. Two academics, William Bridges and Michael Beer, each have modeled their concepts of change and how to best utilize them in a leadership role.
Beer separates his change theories into two separate models, Theory E, and Theory O. The first, Theory E’s change strategy is influenced by economic principles, hence the identification of “E” for economic. In general, this process can garner more publicity due to its harsh tactics and follow through and drive to focus on the shareholder’s value as its measuring stick. This theory can be easily identified by the quick change in structure through cutting staffing, selling off of poor performing branches (downsizing), and restructuring (Beer). These moves and strategies almost seem to occur at a much faster pace since the shareholder’s interest, and …show more content…
On one hand Beer’s Theory E separates itself from Bridges theory by removing emotion and focusing on the economic output of the machine, the company. Theory E simply strives to create more earnings and ratings rather than focus on the well-being of the individual. However, Beer’s Theory O and Bridge’s theory share some similarities. Both theories promote a softer approach to change and identify the need for support and development of the individual. Though the verbiage within each theory separates itself from the other, both task the leadership within the company to provide great communication from the bottom up allowing the employees to own and contribute to changes; empowering the lower level employee. This can bolster the need for consultation through a transitional phase as well as provide for the psychological needs of the