THE NUCLEAR OPTION AS AN EXPRESSION OF ORGANIZATIONAL CHANGE AND PERCEPTION MANAGEMENT

Problem Statement: When an organization is damaged by prolongedpoor performance, controversy arising from allegations of illicit behavior, or other negative events or circumstances, those entrusted with protecting the organization must respond accordingly. An array ofoptions ofvarying intensities is at their disposal. When the damage is grave, the so-called nuclear option, the dismissal ofan organization s top management, may be considered. In this paper, we consider the purpose and effectiveness of the nuclear option. Method: Through collective case study, we explore how the nuclear option has been employed in the past. Findings: From analyses ofEnron, Walt Disney Company, Bank ofAmerica, Skype Technologies, Toyota, Fitness First, and several professional sport organizations, we contend that the aim ofthe nuclear option is twofold: (1) to foster significant organizational change and (2) to promote this change to the organization sdiverse audience, which includes employees, stockholders, consumers, and the media. Conclusions: We demonstrate that the nuclear option generally has had mixed success as a means to correct past failures and restorefaith in troubled organizations. Furthermore. we caution against its adoption by managers because of the uncertainty that accompanies such drastic measures. Originality: This paper provides a critical analysis ofthe strategies used by organizational leaders when seeking organizational change and/or organizational perception management, particularly in cases involving the top management team.