New contracts: The key to change

Successfully managing change in an organization is very difficult. Paul Strebel sets out a new way of doing this, based on contract theory which states that stakeholders have both an explicit and implicit individual contract with their companies. These contracts must be modified if corporate change is to proceed.The author develops five propositions about the role of contracts in change management. Change can only succeed if these five propositions are satisfied and the operational implications fully understood and implemented.