Abstract: Reengineering and downsizing - the change initiatives of the 1990s - have caused a serious dip in employee morale, which, in turn, has decreased productivity. Yet the pace at which business changes will only accelerate in the future, and organizations must be able to implement change initiative without undermining morale even further.

The author suggests that executives, managers, and other change agents must integrate both the tangible and intangible dimensions of business. How? By speaking not only to people's head but also to their hearts, and by aligning structures, systems, and technology in a way that promotes human potential. Hauser believes that by integrating the tangible and intangible dimensions of business, organizations can not only survive but can thrive in today's competitive business environment.