Chapter 14 - Managing strategic change – the process dynamic Flashcards
The cause and need for change
Q: What are the primary sources of the need for change in an organization?
A: The need for change may arise from changes in the environment, a review of strategic capability, or a decision to implement a new strategy.
The cause and need for change
Q: What is meant by VUCA in the context of change?
A: VUCA stands for Volatility, Uncertainty, Complexity, and Ambiguity, which are forces in the world that require organizations to constantly adapt to change.
The cause and need for change
Q: What are the key factors that put pressure on an organization to change?
Positioning against competitors
Processes needing to adapt to external changes
Products needing constant updates to meet customer demands
People needing to be involved in implementing change
The cause and need for change
Q: What are the three levels of change in an organization?
Mega level – Long-term changes impacting the entire organization, like acquisitions.
Macro level – Changes affecting inputs and outputs within the organization, such as production line automation.
Micro level – Changes impacting individual or team results, like profitability goals.
The cause and need for change
What are Martin’s four types of change based on impact and planning?
Surprise – Unplanned, minimal impact, adaptive change.
Crisis – Unexpected, serious change with potentially fatal impact.
Incremental – Anticipated change that can be planned for.
Strategic – Planned, significant change to gain competitive advantage.
The cause and need for change
How do Balogun and Hope Hailey categorize organizational change?
Adaptation – Incremental, step-by-step change without a new business model.
Reconstruction – Rapid, extensive change within an existing business model, often in response to declining performance.
Evolution – Incremental change leading to a new business model, possibly driven by planning or learning.
Revolution – Rapid, wide-ranging change in response to extreme pressures, likely affecting most aspects of the organization.
The cause and need for change
What is the difference between adaptation and revolution in terms of organizational change?
Adaptation is a gradual, step-by-step change, while Revolution is a rapid, wide-ranging change that occurs due to extreme pressures, often affecting every aspect of the organization.
Understanding the context and process of change
What are the eight aspects identified by Balogun and Hope Hailey for diagnosing change management issues?
Time – The available time to make the change.
Scope – The degree of change needed (realignment or transformation).
Preservation – What characteristics should be maintained.
Diversity of opinions and experience – Can make change easier.
Capability – The organization’s ability to execute change.
Capacity – Availability of resources (people, finance, information).
Readiness of the workforce – How accepting or resistant the staff will be.
Power of management – The ability to drive the change.
Understanding the context and process of change
What are the six external forces driving change, as identified by Robbins and Judge?
People – For example, an aging workforce.
Technological – For example, mobile communication devices.
Economy – For example, the financial crash of 2007.
Competition – The global marketplace.
Social – Changing attitudes, often influenced by social media.
Politics – For example, the opening of new markets like China.
Understanding the context and process of change
What is Lewin’s (1951) force field analysis?
It suggests that situations are maintained by a balance between forces driving change and those resisting it. For change to happen, driving forces must be strengthened, and resisting forces weakened.
Understanding the context and process of change
What are the five interrelated factors identified by Pettigrew and Whipp (1991) for managing cultural change?
Environmental assessment – Continuous monitoring of the internal and external environment.
Leading change – Leaders setting direction, creating the right climate, and coordinating activities.
Strategy and operation – Linking vision with operational tasks.
Human resources – Employees should feel appreciated and trusted.
Coherence – The change strategy must have clear goals, fit with the environment, provide competitive advantage, and be feasible.
Understanding the context and process of change
Why is stakeholder communication important in strategic change?
All stakeholders must be aware of the potential impact of strategic change on their respective interests in the organization.
Understanding the context and process of change
How does risk and reputation play a role in the process of change?
Change brings uncertainty, creating risks, especially regarding the organization’s reputation.
