14 - Managing strategic change - the process dynamic Flashcards
3 learning outcomes - chapter 14
- identify the change process that is required as part of the delivery of strategic objectives
- understand the difference between evolutionary change and revolutionary change
- demonstrate the different forces that drive and restrain change
What is meant by the ‘process dynamic’ of strategic change? (3)
Why it happens?
Why it is required?
How this is placed within the context of the strategic journey?
Define strategic change
A mixture of rational, considered and proactive strategy combined with emergent and often reactive strategic decisions
4 pressure points which affect strategy
Process - need to adapt and amend core function
Product - need to ensure output meets changing demands
Position - need for constant awareness of strategic and economic positioning against competition
People - Need to include the right people within change processes
3 levels of change
Mega level - considering long term generally very complex - eg. acquisition
Macro level - involving inputs and outputs of main org system - eg. change in production line from manual to robotic
Micro level - changes that can be achieved by individuals or teams
Martin’s change matrix - 4 ways in which change can be recognised and controlled (explain diagram)
Scale of impact on left
Degree of planning at top
Bottom row - adaptive
Top row - fracturing
Left column - unplanned
Right column - planned
Top left - Crisis
Bottom left - Surprise
Top right - Strategic
Bottom right - Incremental
Where in Martin’s change matrix is most relevant going forwards for ETI?
(2)
Planned & Fracturing = Strategic
in order to avoid
Unplanned & Fracturing = Crisis
Balogun and Hope Hailey - 8 contexts within which change may need to be considered & need to be considered when developing programme of change
Time (urgency)
Scope (whole org or part)
Preservation (need everything change)
Diversity (considered of different opinions)
Capability (can org itself deliver change or are consultants needed)
Capacity (does org have sufficient resources)
Readiness (adequate preparation)
Power (where does power to drive change lie)
Robins and Judge - 6 environmental forces of change
- People
- Technology
- Economy
- Competition
- Social
- Politics
Good to drop into an answer - which 2 thinkers did Robbins and Judge in many ways build on?
Tichy and Kanter
What comes under ‘people’ as a force of change? (4)
Diversity
Longevity
Migration
Outsourcing
What comes under ‘technology’ as a force of change? (4)
Immediacy
Affordability
Social media
AI
What comes under ‘economy’ as a force of change? (4)
Housing
Interest rates
Post 2008 fear
Recession
What comes under ‘competition’ as a force of change? (4)
Global markets
M&A activity
Regulation
Knowledge
What comes under ‘social’ as a force of change? (4)
Environment
Liberalisation
Multi-tasking
Work ethic
