(3, 2) - Managing Strategic Change Flashcards
Name some internal and external examples of triggers for change.
- I – poor performance
- I – new senior management
- I – the implementation of new systems such as ERP
- E – competitive action
- E – changes in regulatory environment
What is meant by a “turnaround” and “crisis stabilisation”?
Turnaround is where competitive action puts a company at risk of failure and it is the process of saving them and returning it to solvency.
Crisis Stabilisation is regain control of a situation through quick fixes following competitive action.
What is the first step in managing change? What are the 8 steps required to do this?
The first step is creating a clear vision.
- Think big, focus on key purposes and opportunities; create a challenge
- Think long term
- Envision: picture the future state vividly in detail
- Check for passion: adjust the vision until its meaningful and exciting
- Assess resource requirements: what is needed to implement the vision?
- Invite others in: involve people in the ideas, planning and implementation process
- Balance conviction and openness: believe in the vision but be open to ideas from others
- Stay objective: don’t take criticism or rejection of your ideas personally
What is incremental change? What are the benefits of this?
It develops upon the existing situation one step at a time, over a period of time. Benefits include:
• Empowers employees and can be a key source of job satisfaction
• It uses and develops existing skills leading to less resistance
• It allows flexibility because it is built on single small steps
• It fosters a sense of progress
Give an example of an incremental change technique.
Quality circles – volunteer group of workers who are trained to identify, analyse and solve work related problems to present their solutions to management.
What is transformational change?
It is reactive and often triggered by a major threat or crisis. It aims to replace the existing situation with a new one in a short period of time. It is implemented from the top as it is a dramatic change which is expensive and risky and often fosters resistance.
Give an example of a type of transformational strategy.
Business Process Re-Engineering (BPR) – rethinking all business processes, management systems, organisational structures, work flows, and underlying assumptions and beliefs. Its main objective is to break away from old ways of working and effect radical redesign of processes to achieve dramatic improvements in critical areas.
What factors will help inform decisions about change and whether the resources and capabilities are present and the approach which should be used to the change?
- Scope – degree of change needed
- Time – how quickly is it needed
- Preservation – what organisational resources need to be maintained
- Diversity – how homogenous are the staff groups
- Capability – what is the managerial and personnel capability
- Capacity – what is the degree of change resource available
- Readiness – how ready for change is the workforce
- Power – what power does the change leader have to impose the change
What is Lewins force field analysis?
It suggests there are driving forces and restraining forces and when they are balanced the change will not occur. To then make the change additional driving forces must be added or restraining forces removed.
Driving forces include changes in the market, new technology, new product development, acquisition of another organisation or a new chief executive.
Restraining forces include cost of change, trade union opposition, staff complacency or a lack of familiarity with new working methods.
A line is drawn and all the driving force arrows point one way and resisting the opposing.
Organisational culture is a key consideration when implementing change. What is organisational culture? What are the three levels which this operates at?
Organisational culture is the collective behaviour of people who are part of an organisation and the meaning they attach to their actions.
- Outward expressions (observable)
- Values and Beliefs
- Underlying assumptions
What is the Cultural Web?
Used to analyse the various elements that form the culture of an organisation. It contains 6 elements:
- Symbols (e.g. logos, executive washroom, cars)
- Power Structures (who has influence)
- Organisation Structures (the hierarchy, formal or informal)
- Control Systems (performance monitoring, supervision, incentives)
- Rituals and Routines (working practices, informal procedures etc)
- Stories (past mythology)
What is strategic drift?
A gradual change that occurs so subtly it isn’t noticed until it is too late. It is the natural result of strategies developing incrementally.
What are the 3 stages of strategic drift?
- Strategy begins to drift and the organisation realises something needs to be done
- Organisation tried to put things right but the changes aren’t fully thought through or are not radical enough.
- The organisation either makes a drastic, transformational strategic change or goes into terminal decline.
