3.10.1 Managing Strategic Change Flashcards
why does change require project management?
- Change is often viewed as a complex project and therefore requires project management
- The activity of delivering the required change within a predetermined set of resources e.g. time, personnel and finance
- The people within a business are crucial to implementing and managing change
what are some benefits of a business embracing change?
- Helps sustain a competitive advantage (and respond to competitor changes)
- Aligns business strategy with evolving nature of customer needs & wants
- Business can take advantage of developing technologies
- Stakeholders (employees, shareholders etc.) gain from improved productivity and work environment
- Change in organisational structure may enable a business to improve the effectiveness of its communication and decision-making
- Being perceived as a business that leads change rather than follows it may bring market benefits (e.g. developing a reputation for innovation)
what did Kurt Lewin say?
Argued that successful businesses tend to be constantly adapting to their environment and changing, rather than being inflexible.
what does Lewin’s force field analysis show?
Force field analysis provides an overview of the balance between
forces: driving change in a business and;
the forces resisting change
what does Lewin’s force field model attempt to identify?
The balance of power between the two forces
The key decision makers
Those people for the change and those against it
draw and explain Lewin’s force field model
Use the word document
explain and analyse the force field model
There are forces driving change and forces restraining it
Where there is an equilibrium between the two sets of forces there will be no change
In order for change to occur the driving force must exceed the restraining force
what are some examples of internal forces that drive change?
- Need for higher profits
- Poor efficiency
- Lack of innovation
- Need to change culture
- Change of leadership
what are some examples of external forces that drive change?
- Customer demand
- Competition
- Legislation & taxes
- Political environment
- Ethics & social values
- Technological change
what are 2 reasons why a degree of resistance to change is normal?
- disruptive
- stressful
why is a degree of skepticism healthy when change is proposed?
A degree of scepticism can be healthy especially where there are weaknesses in the proposed changes
what is a disadvantage of resistance to change?
resistance will also slow the achievement of organisational objectives
what are some reasons why change is resisted?
+Self interest
-Individuals are concerned with the implications for themselves
+Misunderstanding
- Communications problems
- Inadequate information
+Low tolerance of change
-Sense of insecurity
+Different assessment of the situation
- Disagreement over the need for change
- Disagreement over the advantages and disadvantages
what is value of change?
COMPETITIVE ADVANTAGE
- Whilst change is often viewed with concern by those affected, it is an essential part of business life
- Embracing change in the external environment e.g. respond to technological advancements
- Engaging employees as a result of responding to their changing needs e.g. greater flexibility to match work life needs
- Taking advantage of opportunities e.g. new market or new product development
- Responding to changes in the competitive environment e.g. a new competitor entering the market
- Reacting to changing needs and tastes of society to meet customers’ expectations
what does Branson say about the importance and value of change?
Every success story is a tale of constant adaption, revision and change. A company that stands still will soon be forgotten.
what are the 4 reasons that the Kotter and Schlesinger’s model show for barriers (resistance) to change?
+Parochial self interest
-Stakeholders fear that change will result in them being personally worse off and therefore want to protect themselves against this
+Prefer the status quo
-Stakeholders are happy with the way things are and therefore just want to keep it as it is
+Different assessment
-Stakeholders believe that the proposed change is not the correct course of action and that they could suggest a better solution
+Misunderstanding and fear
-Stakeholders believe that the motives for change are wrong and they therefore mistrust the decision makers
what are the 6 ways shown on the Kotter and Schlesinger’s model to overcome resistance to change?
1- education and communication 2-particpation and involvement 3-facilitation and support 4-negotiation and agreement 5-manipulation and co-option 6-explicit and implicit coercion
how can you use education and communication to overcome barriers to change?
(Kotter an Schlesinger)
providing stakeholders with all of the necessary information to help them understand the reason for change, how it will be implemented and the proposed outcome
how can you use participation and involvement to overcome barriers to change?
(Kotter an Schlesinger)
providing a sense of ownership to stakeholders so they feel part of the whole change process
how can you use facilitation and support to overcome barriers to change?
(Kotter an Schlesinger)
providing the necessary skills and resources to help stakeholders feel more confident with the change process
