Change Flashcards
Internal causes of change
Objectives
Personnel
Skill level
Finances
Innovation
External causes of change
Globalisation
Environment
Technology
Customer base
Economy
Competition
Government
Anticipated change
Change that can be predicted / is expected, which means that businesses can respond in order to minimise the adverse effects
Eg - surname labour shortages in some fields, businesses can begin to train existing workers or attract new workers to the profession
Unanticipated / catastrophic / crisis change
Change that a business has no control over, that requires contingency plans for worst-case scenarios.
Eg - terrorist attacks or natural disasters
Strategic / tactical / operational change
Change may occur as a part of the operation of the business.
This could be because of a strategic review, which is about improving and sustaining business performance
The results of this will require operational changes in the way the business is run on a day-to-day basis.
Eg - New Look is closing 60 stores in order to restore profitability
Drivers of change
Factors that will cause change
Barriers to change
Factors that will cause problems / resistance to change
Examples of drivers of change
Weak pound
Cost of living
Rising minimum wage
Technology
Selling via e-commerce
Increasing costs
Examples of barriers to change
Employee resistance (fear of job losses)
Unions
Media coverage
Political interference
Practices and measures that can be implemented to facilitate the process of change
Teamwork
Co-operation
Culture
Employee / employee relations
Individual relations
Trade unions
No-strike deals
Arbitration (dispute compromising)
ACAS
New working practices (eg using Kaizen)
Change management
The approach to overseeing a transitional stage within a business
Why is it important to manage change effectively?
So employees aren’t resistant
So there’s a smooth transition between changes
To have a competitive advantage
Avoid drivers against change
Avoid wasting resources attempting to implement a failed change
To ensure change is successfully implemented
The steps of Lewin’s 3 step change management model
Unfreeze
Change / transition
Freeze / refreeze
Purpose of the ‘unfreeze’ step of Lewin’s 3 step change management model
Determine what needs to change (eg surveys)
Ensure there’s strong support from upper management
Create the need for change
Manage and understand the doubts and concerns
Purpose of the ‘change’ step of Lewin’s 3 step change management model
Communicate often (describe benefits and explain how the change will affect everyone)
Dispel rumours (honesty and deal with problems immediately)
Empower action (provide opportunity for employee involvement)
Involve people in the process (generate short-term wins to reinforce the change)
Purpose of the ‘refreeze’ step of Lewin’s 3 step change management model
Anchor the changes into the culture (identify barriers to sustaining change)
Develop ways to sustain the change (ensure leadership support / reward and feedback systems)
Provide support and training (keep everyone informed and supported)
Celebrate success
What are the hard s’s in mckinsey’s 7-s model?
Strategy, structure, systems
What are the soft s’s in McKinsey’s 7-s model?
Shared values, skills, staff, style
Definition of the hard elements in McKinsey’s 7-s model
They are relatively easy to identify, and management can influence them directly.
Definition of the soft elements in McKinsey’s 7-s model
They can be harder to describe, and are less tangible, and more influenced by your company culture.
What are the steps in Kotter’s 8 step change management model?
- Increase urgency
- Build the team for change
- Have a vision
- Communicate
- Empower action
- Create short term wins
- Don’t let up / build on the change
- Make the changes stick / anchor the changes in corporate culture
Advantages of Kotter’s 8 step change model
Easy to follow (the steps are explicit)
Well-known and proven successful for many years
Focuses on the employee
Limitations of Kotter’s 8 step change model
The model doesn’t take into consideration long-term implications after the changes
Presumes resentment
Doesn’t necessarily get people on board
Making action stick might not be appropriate
Relies on strong management
More complicated than Lewin
What is the link between strong leadership and successful management of change?
Gets people on board
Creates a clear vision
Aligns organisation to achieve change
Anticipates and responds to problems
Ensures resources are in place
Change consultants / external change agencies
An outside consultant (or team of consultants) hired to plan and implement change within an organisation
Benefits of hiring an external change agency to manage the process of change
Agents will have expertise
Negative publicity reduced
Customers not inconvenienced
Saves leaders’ time
External viewpoint (maintains objectivity)
