Chapter 9--12 Flashcards
Balogun and Hope Hailey identifed change types. What are they and explain
- Adaption (Incremental/Realigment) - Slow steady change thats planned in same paradigm
- Reconstruction (Big Bang/Realigment) - Rapid change due to competition but same paradigm
- Evolution (Incremental/Transformational) - New paradigm but planned change
- Revelution (Big Bang/Transformatinal) big change and rapid due to environmental changes
What is discontinuous change?
Sudden changes in Org environmental or operationals leads to new paradigm
What are the characteritsics of discontinous change
- Vision reshaped
- Multiple aspects of Org changed (S’s)
- Future state is unclear
- Speed of change is rapid
What are the S’s in McKinsey’s changing culture. Both hard and soft aspects
Hard
- Strategy
- Structure
- Systems
Soft
- Skills
- Staff
- Style of mgmt
- Shared values
What are the ways to overcome change accoding to Kotter and Schlesinger
- Education and Communication: Sold into staff
- Participation and Involvement: May alleviate the resistance if they are involved in change
- Facilitation and Support: Training and Councilling
- Negotiation and Agreement: Unions to be considered and maybe Incentives to agree change
- Maniuplation: Covert way but may increase resistance
- Coercion: Rapid change and power enforced
What is the purpose of Performance Management
- Feedback for control
- Feeds into stakeholder communication (Profit updates)
- Helps assess performance and reward systems
- Motivation through goal settign thats achievable
What are the strengths of ROI
- Comparable against other unequal division
- Easily understandable
- Useful for external investors
What are the weakness of ROI
- Lead to dysfunctional behaviour
- ROI cannot be set lower than WACC than a positive ROI may lead to investor wealth decline
What are the general criticisims of ROI and RI
- Profit van be manipulated
- Discourage asset investment which is crucial for innovation
- Hard to compare against different industry due to assets
- Can lead to ST decison making
What are the features of continuous change
- Incremental
- Does not change Paradigm
- Minimium resistance
- Small scale
What are the features of discontinous change
- Changes Paradigm
- Fast
- Change in Org Environment/Operations
- Can be one off change or result of series of incremental
What are the cultural aspects of Balogun and Hope Bailey’s cultural web that need to be considered when managing change (7)
- Symbols
- Power
- Organisational
- Controls
- Routines and rituals
- Paradigm
- Stories
What is McKinsey’s 7 “S” model used for
- Shows the links between Org behavious and individuals
- Shows that change affects Org and people
What are the features of Lewin’s 3 stage model to change
Unfreeze
- Remove norm routines
- Consult team members
- Positive Re-inforcement
Change
- Learn
- Encourage staff participation
- New behaviours and roles
Freeze
- Embed new behaviours and standards
- Positive re-inforcement such as rewards
What are the criticisms of Lewin’s 3 stage model to change
- Assumes change is structured rather than continuous and multi dimensional
- Underplays the fact that people will only change if tehy feel the need
What are the 4 P’s of transition
- Purpose - why is change needed
- Picture - What will future look and feel like
- Plan - Steps to be taken
- Part - Peoples part to achieve future state
What are J, S & W 5 styles of change
- Education and communication
- Participation
- Interventions
- Direction
- Coercion
Explain the GROW model when it comes to change
This is the development of managers capabilities through mentoring and coaching
- Goals - what the learner wants to achieve
- Reality - current position of learner
- Options - to develop skills and achieve objectives
- What - what is leanrer going to do and need to achieve
What are the aspects of the Results and Determinants analysis?
Results
- Competitive and Financial performance
Determinants
- Quality of service
- Flexibility
- Resource Utilisation
- Innovation
What is the 4 stage approach to Balance Scorecard
- Communicate mission to everyone
- Link mission to depts and individual objectives
- Use scorecard to prioritise objectves and allocate resources
- Use feedback on performance to promote progress
What downsides are there to the Balance Scorecard
- Some measures may conflict
- Must add value and not just easy to measure
- Measures developed by someone who understands the biz
- Cost vs Benefit
What are the internal and external aspects of the Perforamce Pyramid
Internal
- Financial Measures (Corp Level)
- Productivity (SBU level)
- Flexibility (SBU level)
- Waste (Ops level)
- Process time (Ops level)
External
- Market satisfaction (Corp level)
- Customer satisfaction (SBU level)
- Flexibility (SBU level)
- Quality (Ops level)
- Delivery (Ops level)
What is the formual for ROI
PBIT (Controllable profit) / Cap employed x 100
What are the features of EVA
- R&D added back to profit
- Adv added back to profit
- Non cash items are eliminated
- One off unusual items are eliminated
- Accounting profit is added back (Economic depreciaton is made instead)
- Uses replacement cost
What are the drivers of SVA
- Sales
- Profit Margins
- Tax payable
- Length of project
- Fixed assets investment
- Working Capital
- Cost of capital
What is the difference between CSF and KPI
CSF is what a business must achieve to be succesful
KPI is how progress with a CSF is measured
What are the change roles within an org
- Change leader - Pivotal internal fig
- Change Advocate - Proposing change
- Change sponsor - Legitmieses it
- Change agent - Implements
- Change target - Anyone undergoing change
What are the 4Rs in Gemini framework to change
- Reframing
- Restructuring
- Revitalising
- Renewal
When implementing the scorecard what order shoudl they be done in?
- Translate vision
- Communicating & Linking
- Business Planning
- Feedback and control
What is a market orientation
Focusing on supplying cutomer needs
Give one characteristic of SVA & EVA
SVA
- NPV of future cashflows adj for COC
EVA
- Profit is adjusted for LT investment such as R&D and training
What are the 3 criteria for Transfer Pricing
- Equity
- Neutrality
- Admin simplicity
