Change Flashcards
Internal change types :
Innovation - new products (eg new machinery changes)
Objectives - may switch from growth to survival if economic crash occurs
Person - new employees/managers may introduce new ideas
Skill level - staff skill level may change (eg if there is a new machinery introduced skill level is lower and more is needed)
Finances - financial status may impact
External change types
Environmental - forced change eg to improve sustainability
Technology - if tech changes and business doesn’t adapt it may lead to less success eg when emails were introduced
Customer base - customer base may change eg with age/ethnic group
Economy - status of economy
Competition - if more competition arrives
Government - new laws eg all buildings need to be disabled friendly
Anticipated change
Change that can be predicted / expected
Unanticipated change / catastrophic / crisis
Change that a business has no control over (required contingency planning for worst case eg natural disasters / terrorism)
Tactical change
Short term how to make the changes to get to the strategic change
Strategic change
Long term change planned
Operational change
Changes on how the business is run on the day to day
Change management def
Approach to overseeing a transitional stage within a business
Why is it important to manage change effectively
- avoid wasting resources
-avoid barriers of change (things that prevent change eg employees)
-avoid employee resistance
-ensure change is successfully implemented (doesn’t revert back)
Lewin 3 Step Change Model
Unfreeze - determines what needs to be changed, ensure there is management support, emphasise why change is needed, be open to employee concerns
Change - communicate + explain why it’s good, remove bad rumours, involve people in the process eg generate short term wins
Re freeze - identify barriers to sustaining change, create reward system, provide support, collect feedback, don’t let it revert
McKinley’s 7s model - what are they
Structure, strategy (stay competitive), systems (daily activities and procedures) - HARD (management influences the directly - less tangible)
Skills (of staff) , staff, style (of leadership) - SOFT (more influenced by company culture- tangible)
7 elements need to align for it to succeed (eg if you change structure it’ll affect style of leadership)
If not aligned it leads to inconsistencies
Kotters 8 Step Change Model
Increase urgency - identify potential threats
Build the team for change - leads in organisation
Have a vision - establish what is to be achieved
Communicate - communicate to get people to accept the change
Empower action - remove barriers - reward progress
Create short term wins
Don’t let up - keep up momentum
Make the change stick
Change consultation / external change agency
External consultant hired to plan and implement change
Benefits of external change agency
-specialist doing the job (better?)
-no bias, will maintain objective
-saves time (more time for managers to do their stuff)
-customers less likely to be inconvenienced
Disadvantages of external change agency
-expensive to hire
-hard to maintain change when gone - loss of moment = may revert back
