Managing Change Flashcards
What is the John Cotter quote?
“Management is about coping with complexity. Leadership,by contrast is about coping with change”
What is step change
Significant and occurs rapidly
How can businesses overcome change?
Education - talk through process
Support - make sure they know they are keeping their job
What is incremental change?
Change occurs over a period of time in incremental, small stages
Distinguishing between internal and external cause of change
Internal causes of change:
- arise from factors within the control of the business - i.e the decisions taken by the business management
External causes of change:
- arise from factors outside the control of the business - i.e as a result of changes in the external environment
Examples of causes of internal change
New leadership
New ownership
Change in corporate objectives
Significantly investment decisions
Changes to scope of business activities - e.g business unit closures
Adjusting the organisational structure - e.g delayering
Examples of causes of external change
Significant competitor actions - e.g new products/takeovers
Political and legal changes - e.g deregulation or new taxes
Significant changes in economic environment - e.g post brexit for UK firms
Longer term changes in society - e.g lifestyles, demographics
Technological change - e.g rapid growth or mobile device usage and related market disruption
Causes of disruptive change
This is a form of step change that arises from changes in
the external environment
• Disruptive change impacts the market as a whole,
challenging the established “business model” (i.e. how
products and services are sold)
• Rapid improvements in technology are the main driver of
disruptive change since technological innovation provides
new ways of delivering goods and services as well as
reducing barriers to market entr
What is Richard Branson’s view on the importance and value of change?
“Every success story is a tale of constant adaption, revision and change. A company that stands still will soon be forgotten.”
