Managing Strategic Change (3.10) Flashcards
Time-Based Management is the effective…
- CPA is…
Time-Based Management is the effective management of resources to ensure that unproductive time is eliminated from the production process.
- CPA is involved in this.
Critical Path Analysis (CPA) is a technique used to identify the order…
Critical Path Analysis is a technique used to identify the order in which all tasks need to be completed when planning a project.
(CPA) The Critical Path is the set of activites that will…
- The total time along the critical path is also the minimum…
The Critical Path is the set of activities that will lengthen the duration of the project if delayed.
- The total time along the critical path is also the minimum time in which the whole project can be completed.
CPA Rules :
- Each line represents an…
- Lines shouldn’t…
- ESTs are calculated from…
- LFTs are calculated from…
- For ESTS, take the EST from…
- If more than one activity precedes a node the highest…
- Each line represents an activity.
- Lines shouldn’t overlap.
- ESTs are calculated from LEFT to RIGHT.
- LSTs are calculated from RIGHT to LEFT.
- For ESTS, take the EST from the previous task and add on the duration of the task.
- If more than one activity precedes a node the highest figure becomes a EST.
CPA Rules :
- Nodes are… EST is at the… LFT is at the…
- For LFTs, take away the length of…
- (LFT) If more than one activity precedes a node then the…
- The first node will always have…
- The final node will always have a EST and LFT that…
- The node before is the _______, the node after is the ______.
- Nodes represent the EST and LFT, EST is at the TOP, LFT at the BOTTOM (circles).
- For LFTs, take away the length of all the activities to calculate the LFT for each figure.
- If more than one activity precedes a node then the lowest figure becomes the LFT.
- The first node will always have an EST and LFT of 0.
- The final node will always have a EST and LFT that is the same figure.
- The node before is the EST for task, node after is the LFT.
CPA + (5) - :
+ Greater…
+ Identifies the critical…
+ Aids…
+ Improves focus on…
+ Allows for…
+ Greater productive efficiency which can reduce costs.
+ Identifies the critical activities.
+ Aids resource planning.
+ Improves focus on project, detailed planning.
+ Allows for just-in-time.
OVERALL : Good, just do things talked about in disadvantages.
CPA Disadvantages (5)
- Is only a starting…
- Relies on…
- Does not take into account…
- Large projects can be too…
- Emphasis on…
- Is only a starting point for a successful project.
- Relies on estimations, can do MR/hire experts to make realistic.
- Does not take into account external influences.
- Large projects can be too complex for CPA.
- Emphasis on speed could impact quality, remind managers to keep quality in mind.
(CPA) The float shows the…
- Formula :
The float shows the time a task can over-run without holding up the whole project, every activity should be analysed to identify the float.
LFT - Duration - EST.
(CPA) If there is no float, the items are ___________ because there are no opportunities for delays.
- The order of…
- If the float is ___, then this would…
- If there is no float, the items are critical because there are no opportunities for delays.
- The order of the crucial activities is the critical path.
- If the float is 0, then this would delay the whole project.
Experience Curve is the advantages…
- More experienced staff means more…
The advantages enjoyed by an established business as a result of having both managers and employees who are familiar with the running of a business.
- More experienced staff means more efficient which lowers unit costs.
Experience curve leads to…
- A fall in…
- Greater specialism…
- Knowledgeable…
- Confidence when…
- Less…
- A fall in unit costs.
- Greater specialism, increasing efficiency.
- Knowledgeable managers.
- Confidence when dealing with stakeholders.
- Less mistakes.
Lower Unit Costs :
- Economies of Scale :
- Economies of Scope :
- Experience Curve :
- Economies of Scale : More of same product.
- Economies of Scope : Multiple products.
- Experience Curve : Experience of managers.
(Managing Organisational Culture) Culture is the…
- It affects things like :
- Decision…
- Organisational…
- C__________________.
- Leadership…
- Attitude towards…
- Workforce…
- e.g. use school’s use of…
Culture is the values and standards shared by the people and groups within an organisation.
- It affects things like :
- Decision making.
- Organisational structure.
- Communication.
- Leadership style.
- Attitude towards work.
- Workforce performance.
- e.g. use school’s use of golden tickets.
(Managing Organisational Culture)
Reasons why culture is important for business :
- Impact on staff…
- Effects…
- Competitiveness of the…
- Brand…
- Impact on staff motivation e.g. communication, performance indicators.
- Effects decision making e.g. speed, scientific v intuition.
- Competitiveness of the business, e.g. innovation.
- Brand image, e.g. consumer perception.
(Managing Organisational Culture, Influences on Organisational Culture :
- Mission…
- Personal attitudes, beliefs…
- Norms within…
- Ownership and…
- Geographical…
- Competitive…
- Mission statement and corporate objectives.
- Personal attitudes, beliefs and priorities of leaders.
- Norms within society.
- Ownership and size of organisation.
- Geographical scope, i.e. local, multinational or global.
- Competitive environment.
(Managing Organisational Culture, Reasons for changes in culture)
- Change in…
- Change in…
- Change in…
- Responding to…
- Change in owners/leaders.
- Change in corporate objectives.
- Change in size, e.g. mergers and takeovers.
- Responding to market conditions (new competition, economic climate).
(Managing Organisational Culture, Problems)
- Resistance to…
- Lack of…
- Period of…
- Alienation of…
- Resistance to change.
- Lack of trust.
- Period of adjustment.
- Alienation of suppliers, customers and other stakeholders.
Handy’s Culture, 4 different :
- Task.
- Role.
- Power.
- Person.
(Handy’s Culture, TASK)
- Emphasis on achieving…
- Teams formed to solve…
- P_______________/D___________.
- A risk is that the team may…
- __________ structure Delegation.
- Emphasis on achieving set outcomes through cooperation and team work.
- Teams formed to solve particular problems, no single power force.
- Paternalistic/ Democratic.
- A risk is that the team may develop their own objectives.
- Matrix structure Delegation (project teams).
(Handy’s Culture, ROLE)
- Clear rules and procedures result in a clear hierarchy where the…
- Individual knows their…
- Usually _______ structure.
- Could lead to…
- B________________/ _______________ leadership.
- Likely ____________ sectors e.g. …
- Clear rules and procedures result in a clear hierarchy where the organisation functions based on each individual’s role within a clearly defined structure.
- Individual knows their position within the heirarchy.
- Usually tall structure.
- Could leader to slower decision-making.
- Bureaucratic / autocratic leadership.
- Likely public sector, e.g. schools and NHS.
(Handy’s Culture, POWER)
- A few people central to the…
- ____________ decisions.
- A_______________.
- Collapse of businesses like _______ likely due to this.
- ___________________ decision making.
- A few people central to the organisation have control.
- Swift decisions.
- Autocratic.
- Collapse of businesses like Royal Bank of Scotland likely due to this.
- Centralised decision making.
(Handy’s Culture, PEOPLE)
- A high degree of…
- Risk taking and…
- D______________ or _________-__________.
- Power lies in…
- Common in…
- D________________ decision making.
- A high degree of autonomy is given to individuals who are often highly skilled.
- Risk taking and innovation are actively encouraged and rewarded, whilst failure is not criticised.
- Democratic or laissez-faire.
- Power lies in each group of individuals.
- Common in firms of professionals, e.g. lawyers.
- Decentralised decision making.
Managing Strategic Implementation example, Netflix are…
- There’s an increase in demand due to…
- ‘S_________________’.
- Price D_______________, different prices for…
- Netflix’s SWOT :
Netflix are raising prices.
- There’s an increase in demand due to streaming live things/new programmes.
- ‘Streamflation’.
- Price Discrimination, different prices for different people, e.g. Uni students paying different fees, booking plane tickets earlier.
- Netflix’s SWOT : Internal - loyalty, external - competitor actions, pursuing strategy - announced price increases.
(How to Implement Strategy Effectively)
Order : (5)
1) Mission Statement
2) SWOT
3) Strategic Direction
4) Pursuing Strategy
5) Review and Monitoring
(How to Implement Strategy Effectively)
- Allocation of…
- Set clear…
- Manage and…
- Predetermine…
- Adapt as…
- Allocation of responsibilities & resources.
- Set clear standards.
- Manage and coordinate resources.
- Predetermine monitoring points and success criteria at each point.
- Adapt as necessary.
(Strategic Implementation)
Effective leadership is essential throughout the…
- Leaders will be responsible for things like :
- Clearly defining…
- Communicating the…
- Overcome…
- Allocating…
- Monitoring…
Effective leadership is essential throughout the process of strategic implementation.
- Leaders will be responsible for things like :
- Clearly defining the strategic direction.
- Communicating the strategy, clear vision.
- Overcome resistance to change.
- Allocating resources.
- Monitoring progress against pre-set targets.
(Strategic Implementation, Effective Leadership, Communication)
- Strategy needs to be shared with…
- Reduce…
- Gain support from…
- Help everyone to understand…
- Co-ordination of…
- Strategy needs to be shared with stakeholders.
- Reduce resistance to change.
- Gain support from external organisations, e.g. investors/TV.
- Help everyone to understand their role during the implementation stage.
- Co-ordination of all key parties, e.g. suppliers and employees.
(Strategic Implementation, Organisational Structure will affect ability to implement new strategy, should consider) :
- Span of…
- Chain of command (time it takes to communicate).
- De________________ or…
- Allocation of…
- Power…
- Span of control (ease of communication).
- Chain of command (time it takes to communicate).
- Decentralised or centralised.
- Allocation of roles during implementation.
- Power distance index.
Planned Strategy :
- Introduced with _________________.
- What the manager wanted to…
+ Provides a clear sense of…
+ Easily __________________.
- However, may lack…
- Introduced with foresight.
- What a manager wanted to implement.
+ Provides a clear sense of direction.
+ Easily communicated. - However, may lack flexibility.
Emergent Strategy (the strategy that actually happens) :
- Developed over…
- Responds to changes in…
+ Greater ________________.
- May create feeling of…
- Developed over time.
- Responds to changes in internal/external environment.
+ Greater flexibility. - May create feeling of mistrust amongst stakeholders due to frequent revisions leading to a lack of confidence, e.g. Viagra, originally for high blood pressure.
(Mock) Strategic Drift : When a strategy fails to…
- 4 stages :
- e.g. (2)
- When a strategy fails to adapt to changes in the internal and/or external environment making it no longer fit for purpose.
- Incremental Change, Strategic Drift, Flux, Transformational Change OR Demise.
- e.g. Blockbuster fails to compete with Netflix, Kodak, once an extremely valuable brand but failed to keep up with digital cameras & change in leadership, unable to change company culture.
Reasons for Strategic Drift :
- Failing to keep up with changes in EXTERNAL environment, e.g. :
- Technological…
- Changing priorities in…
- Competitive…
- G_______________.
- Failing to keep up with changes in INTERNAL environment, e.g. :
- Change of…
- Updated…
- Change in…
EXTERNAL environment :
- Technological advancements.
- Changing priorities in society.
- Competitive nature of market.
- Glolbalisation.
INTERNAL environment :
- Change of leadership.
- Updated corporate objectives.
- Change in size.
Divorce between Ownership and control refers to the situation that arises when…
Divorce between ownership and control refers to the situation that arises when one group of people own a business (i.e. the shareholders), but a different group makes the day-to-day decisions (i.e. managers).
Possible effects of Divorce between Ownership :
- Managers making decisions to…
- S_______-termism vs…
- Managers making decisions to maximise interest, e.g. pay rewards at the cost of profit margins.
- Short-termism vs Long-termism, e.g. managers wanting to grow the business at the expense of immediate to shareholders.
Corporate Governance refers to the formal…
- C________________ (in middle???).
- Board of…
- Legal and…
- Business…
- Disclosure/T_________________.
- Risk and…
- M___________________.
Refers to the formal policies and procedures that are instrumental to the running of a business.
- Communication.
- Board of directors + committees.
- Legal and regulatory.
- Business practices and ethics.
- Disclosure + transparency.
- Risk and performance management.
- Management
Flexible working refers to a group of employees who…
- Ability to…
+ (3)
- (3)
Flexible working refers to a group of employees who have the ability yo adapt to changing work demands and schedules.
- Ability to work remotely, flexible hours etc.
+ Save costs, e.g. on an office.
+ May improve retention, better work-life balance.
+ Take advantage of development in technology.
- Additional administrative work involved in setting up.
- Lowers employee productivity, may create decreased sense of belonging.
- Potential communication issues, could demotivate.
Charles Handy : ‘Shamrock Organisation’
Describes a…
- __________ Workforce : Permanent…
- C_______________ : Specialists or…
- F____________ Workers :
Describes a new organisation structure composed of three leaves.
- Core Workforce : Permanent employees essential to the organisation.
- Contractors : Specialists or outsourced providers of non-core functions.
- Flexible Workers : Part-time, temporary, or freelance contributors who offer adaptability.
Flexible Workforce :
+ Save __________, e.g. …
+ May improve…
+ Take advantage of…
+ Potential benefit of…
- Addition…
- Lowers…
- Potential __________________ issues.
- Decreased…
+ Save costs, e.g. on office.
+ May improve retention.
+ Take advantage of development in technology.
+ Potential benefit from a better work-life.
- Additional administrative work involved in setting up.
- Lowers employee productivity.
- Potential communication issues.
- Decreased sense of belonging.
(Lewin’s Force Field Analysis)
- There are two…
- Driving forces who are…
- Resisting Forces who are against…
- There are two opposing forces when change is being implemented.
- Driving force who are in favour for change.
- Resisting Forces who are against change and fighting against it happening as they prefer status quo.
(Lewin’s Force Field Analysis)
Lewin’s Model of Change attempts to identify :
- Balance of…
- The key…
- Those people for…
- Balance of power between the two forces.
- The key decision makers.
- Those people for change and those against it.
(Lewin’s Force Field Analysis)
Driving Forces, e.g. Panasonic shifting to embrace business clients instead :
Driving Forces :
- Large ___________.
- Successful…
- New….
Restraining Forces :
- Existing brand…
- Lack of…
- Financial…
- Employee…
Driving Forces :
- Large losses.
- Successful rivals (e.g. Apple & Samsung).
- New President Tsuga.
Resisting/Restraining Forces :
- Existing brand recognition.
- Lack of knowledge in new markets.
- Financial position & costs.
- Employee resistance.
(Kotter and Schlesinger, Resistance to Change) They suggest 4 main reasons :
- Parochial ________-_____________.
- M_______________ and…
- Different…
- Prefer the…
- LINK : These 4 can cause…
- Parochial self-interest.
- Misunderstanding and fear.
- Different assessment.
- Prefer the status quo.
- LINK : These 4 can cause restraining forces (Lewin).
(Kotter and Schlesinger, Resistance to Change) They suggest 4 main reasons :
- Prefer the Status Quo : Stakeholders are happy…
- Parochial Self-interest : Stakeholders fear that change will…
- Misunderstanding & Fear : Stakeholders believe that the motives for…
- Different Assessment : Stakeholders believe that the proposed…
— Prefer the Status Quo :
- Stakeholders are happy with the way things are and therefore just want to keep it as it is.
— Parochial Self-Interest :
- Stakeholders fear that change will result in them being personally worse-off and therefore want to protect themselves against this.
— Misunderstanding & Fear :
- Stakeholders believe that the motives for change are wrong and they therefore mistrust the decision makers.
- Different Assessment :
- Stakeholders believe that the proposed change is not the correct course of action and that they could suggest a better solution.
(Kotter and Schlesinger’s Model for Overcoming Resistance to Change)
- 6 Methods to Overcome Resistance to Change :
- Goes from ________ powerful to _________ powerful.
- Education and…
- Negotiation and…
- Facilitation and…
- Participation and…
- Manipulation and…
- Explicit and…
- Goes from less powerful to more powerful.
- Education and Communication.
- Negotiation and Agreement.
- Facilitation and Support.
- Participation and Involvement.
- Manipulation and Co-option.
- Explicit and Implied Coercion.
(Kotter and Schlesinger’s Model for Overcoming Resistance to Change)
- 6 Methods to Overcome Resistance to Change :
- Education and Communication : Providing stakeholders with…
- Negotiation and Agreement : Increase…
- Facilitation and Support : Providing the necessary…
- Participation and Involvement : Providing a sense of…
- Manipulation and Co-option : Use of….
- Explicit and Implied Coercion : Pushing change through…
- Education and Communication : Providing stakeholders with all the information they ned to understand the change.
- Negotiation and Agreement : Increase two-way communication by bargaining with stakeholders and if necessary compromising change process.
- Facilitation and Support : Providing the necessary skills and resources to help stakeholders feel more confident with the change process.
- Participation and Involvement : Providing a sense of ownership to stakeholders so they feel part of the change process.
- Manipulation and Co-option : Use of project champions (someone who agrees with change) who may receive incentives and are tasked with winning around others.
- Explicit and Implied Coercion : Pushing change through despite resistance, may be a last resort.
(Organic vs Mechanistic Structure)
Organic Structure :
- In____________.
- Fl__________.
- Favours informal…
- Associated with ________________ -decision making & employee…
- Find change…
However : Won’t…
Organic Structure :
- Informality.
- Flexible.
- Favours informal, e.g. verbal, communication.
- Associated with decentralised decision-making & employee empowerment.
- Find change easier to handle.
However : Won’t work in all businesses.
(Organic vs Mechanistic Structure)
Mechanistic Structure :
- More formality and…
- Associated with ____________________ decision-making & employee _______________.
- Reliance on…
- Favours standardised…
- Little perceived need to…
However : Greater… and restricts…
- More formality and bureaucratic.
- Associated with decentralised decision-making & supervision.
- Reliance on formal communication methods.
- Favours standardised policies and procedures.
- Little perceived need to change.
However : Greater resistance to change and restricts creativity.
