Chapter 10 - Understanding the impact and context of change Flashcards
What are some external triggers?
Indirect triggers (PESTEL)
Direct triggers (Porter’s five forces)
What are Porter’s five forces?
Competitive rivalry
Power of customers
Power of suppliers
Threat of new entrants
Threat of substitutes
What are some internal triggers?
Philosophy - new ownership
Reorganisation - takeover/merger, restructuring
Personnel - promotions/transfers
Conditions - location change
Technology - new procedures/systems
What are the four types of change?
Evolution
Adaptation
Revolution
Reconstruction
What is evolution change?
Transformation, Incremental
Transformational change implemented gradually through inter-related initiatives.
Can take a long period of time, but results in a different organisation once completed
What is adaptation?
Realignment, Incremental
Change undertaken to realign the way in which the organisation operates
What is revolution?
Transformation, Big Bang
Transformational change that occurs via simultaneous initiatives on many fronts. Likely to be forced, reactive transformation
What is reconstruction?
Realignment, Big bang
Change undertaken to realign the way in which the organisation operates with many initiatives implemented simultaneously
What does Transformation entail?
Changing an organisations culture
What is realignment?
Does not involve a fundamental reappraisal of the central assumptions and beliefs
What are some common triggers for the ‘window of opportunity’ for achieving a revolutionary strategic change?
Competitive pressure
Regulatory pressure
First mover advantage
What is culture?
Sets of values, guiding beliefs, understanding and ways of thinking that are shared by the members of an organisation and is taught to new members as corrects.
What are the seven parts of the cultural web which was devised by Gerry Johnson?
Stories and myths
Symbols
Power structure
Organisational structure
Control systems
Routines and rituals
The organisational paradigm and values
What does McKinsley’s 7S model look at?
Corporate culture and various components that it is made up of
What are the seven interconnected elements of McKinsey’s 7S model?
Strategy
Structure
Styles
Staff
Skills
Systems
Shared values
What is resistance?
Any attitude or behaviour that reflects a person’s unwillingness to make or support a desired change
What are some reasons for resisting change?
Fear of technological unemployment
Fear of changes to working conditions
Implied criticism of current working method
Feel less valued
Dislike need to break up current social environment
Personla dislike of people implementing change
According to Kotter and Schlesinger what are the four reasons that explain why people resist change?
Parochial self-interest
Misunderstanding
Low tolerance to change
Different assessments of the situation
