Chapter 14 – Managing strategic change – the process dynamic

Question 1

Identify the 4 elements of change - 4 Ps

Answer 1

1. Positioning of the organisation against competitors
2. Processes need to be in place to adapt and amend the internal functions to align with external change
3. Products need constantly updating to meet changing needs and demands of customers
4. People need to be included and involved as they are required to bring about any change in strategic plans

Question 2

According to Martin (2001), there are 4 different ways in which change can be recognisd and controlled within an organisation as shown in his change matrix - what are these 4 ways? SICS

Answer 2

• Change that comes as a surprise by its nature unplanned, but the organisation is able to adapt to the emerging requirement
• Change that comes as a crisis is unplanned and then has a potentially drastic impact on the organisation
• Change that is described as incremental results from the building of small, planned changes in the gradual evolution of the organisation
• Change that is described as strategic is a result of planning but has a fundamental impact upon the organisaton e.g. diversifying into a new business

Question 3

Balogun and Hope Hailey (2004) suggest that all organisational change needs to be considered within eight differing contexts.

Answer 3

1. Time: How urgent is the change? Is there time for lengthy consideration or is there the need for immediate action?
2. Scope: Will the change impact the entire organisation, or initially only a small part?
3. Preservation: Does everything need to change?
4. Diversity: Have sufficient different and relevant opinions been explored?
5. Capability: Are the people within the organisation able to deliver the required change or are new people or external consultants required?
6. Capacity: Does the organisation have sufficient accessible resources, in particular financial, to implement the required change?
7. Readiness: Has the appropriate level of preparation been undertaken?
8. Power: Where does the power lie to drive the perceived change? Is it dependent upon one or more people acting appropriately?

Question 4

Kanter et al (1992) recognised the influence of the environment but suggested that two different dynamics existed to drive strategic change within organisations:

Answer 4

1. Lifestyle differences: nature of change in consumer demand at the ultimate end of all supply chains, intrinsically linked to the changes in individual people’s expectations
2. Political power changes: largely within an organisation, as individuals and stakeholders compete for the ability to make and implement strategic decisions to suit their own particular ambitions and visions

Question 5

What is Lewin’s force field analysis?

Answer 5

The work of the psychologist Kurt Lewin (1951) provides a simple methodology to help in our consideration of change. For change to happen,** the driving forces must be strengthened and the resisting forces weakened**

Question 6

Balogun and Hope (2004) extended the circumstances of changes concept by Martin (2001). Change will be driven from which two perspectives?

Answer 6

1. Evolution - steady incremental change and enabling the organisation to develop and adapt with rare transformational changes
2. Revolution - the occasional ‘big bang’ which will require structural reorganisation (fracturing)

Question 7

According to Balogun and Hope, what are the eight different contexts of organisational change? TSPDCCRP

Answer 7

1. Time
2. Scope
3. Preservation
4. Diversity
5. Capability
6. Capacity
7. Readiness
8. Power

Question 8

How would you assess external drivers of change?

Answer 8

• Robbins & Judge (2016): PPESTL