3.10 Managing Strategic Change Flashcards
Types of change
Internal
External
Incremental
Disruptive
Lewins force field analysis
Overview of balance between forces driving and resisting change
Driving forces of change
PESTLE- external
Change of leadership, need for higher profits, lack of profits
Why change is resisted
Self interest
Misunderstood
Different assessment
Low tolerance
Flexible organisations
Restructuring
Delayering
Flexible employment contracts
Organic vs mechanistic - mechanistic - highly structured, organic - flexible
Strategic implementation
Process of turning a plan into action
Total float time (CPA)
Projects that can be delayed due to not being on the critical path
Planned vs emergent strategy
Planned - concoiusly planned , ignores effect of external influences
Emergent - strategy emerges over time collide with external changes
Strategic drift
Strategy fails to align with ever changing external environment
Causes
Failure to adapt
Complacency
How to avoid strategic drift
Develop flexible environment
Ensure firm can accept change
Culture where feedback is taken on board
Network analysis (E)
Pros
Forecasts and reduces risk
Manage and allocate resources efficiently
Minimise project time
Cons
Can become useless quickly as path can be disrupted due to external factors (PESTLE)
Cooperate governance
By which companies are directed and controlled
