Managing strategic change - the people dynamic Flashcards
ROLES IN THE CHANGE PROCESS - LEADERSHIP OF CHANGE
What are the 2 different but complementary types of change leadership?
Successful strategic leadership requires what?
How do these 2 leadership styles link to operation and governance?
- Transformational leadership = leader will focus on the building of the strategic vision, the creation of identity and empowerment, and the development of an appropriate culture
E.g. Steve Jobs - Transactional leadership = leader more concerned with making sure that the operational flow is appropriate to enable the strategy to be achieved
E.g., Fred Goodwin at RBS plc before the 2007 financial crisis
a combination of both transformational and transactional leadership (and autocratic and participative leadership)
Governance could be perceived as more of a transformational style of leadership = gradually driving difference and change
Operation of the organisation on a day-to-day/week-to-week basis might require a more transactional leadership style
ROLES IN THE CHANGE PROCESS - LEADERSHIP OF CHANGE - THE LEADER’S USE OF POWER WHEN DEALING WITH OTHER PEOPLE
The role of leader implies that there are followers, and therefore that the leader in some way or other is in a position of power with regard to the followers.
Covey suggests that there are what 3 core types of power that are exerted by leaders?
- Coercive power = the follower is concerned or afraid of what will happen if they do not follow the expectations of the leader (often based around fear of punishment or revenge).
- Utility power = the follower fulfils the requirement in the expectation of some form of reward, the leader has something that they want, tangible or intangible (often based around remuneration or benefits).
- Legitimate power = the follower has a trust and respect in the leader and their objectives (often based around respect and belief).
ROLES IN THE CHANGE PROCESS - IDENTIFYING THE CHANGE AGENTS
What is a change agent?
A change agent within an organisation will be acting as what? To do what?
What role will they have?
Change agent = a person, or people, who are able or required to use their particular abilities (and/or knowledge) or position to effect change within an organisation
acting as the catalyst to enable, speed up or slow down the strategic change required
have a significant role within the strategic change itself, or may be someone who is able to remain entirely objective = in either case, need to bring clarity and objectivity to the strategic change as it takes place
ROLES IN THE CHANGE PROCESS - IDENTIFYING THE CHANGE AGENTS
Investors In People CIC suggests that in order to be successful in enabling organisational change, a change agent will do what 6 things?
- understand the benefits the changes will bring and have the patience to take the longer-term perspective
- remain close to the human side of change, understanding why people behave and react the way they do
- balance emotional intelligence with a relentless focus on the bottom line, always remembering that results matter
- embody the change and be prepared to take risks
- open the process of change to ensure all people involved have the chance to incorporate their knowledge
- remember what’s great about the business already – very rarely is strategy about entirely removing the stability of the today position
ROLES IN THE CHANGE PROCESS - USING THE TEAM & BUILDING MOMENTUM
Why should the team always be involved within strategic change?
What is each person limited by?
Therefore, it makes sense to recognise the need to do what?
By recognising that strategy is a perpetual process, combining the rational and the emergent, we can realise that the development of strategy, and the driving of strategic change requires what?
Because of the concept of a learning organisation = the bringing together of the individual brains to react and interact, enabling an organisation to bring lasting and effective strategic change
limited by their knowledge, experience parameters and particular paradigm at any point in time
makes sense to recognise the need to involve, at differing levels, all people affected by any perceived strategic change
requires a range of different human skills and abilities
ROLES IN THE CHANGE PROCESS - USING EXTERNAL LEVERAGE
An objective mindset is important in delivering strategic change within an organisation. How can this sometimes be delivered most effectively?
Why?
Who else may drive change?
What is the role of the company secretary / governance professional?
What may be the advantages and disadvantages of using an external agent to drive strategic change within an organisation? (3)
by a person or people external to the organisation e.g., external consultants and/or new NEDs to help the formulation of strategy and then facilitate the change process required
A consultant is able to operate outside of the organisational culture and bring a dispassionate view to that process (= not involved within the politics of the organisation and has no apparent conflict of interest)
Stakeholder and their stake and/or requirement = could be that strategies are developed around the vision of one or more stakeholders
= to find an objective position and be able to understand both sides of an argument.
(1) objectivity vs subjectivity, (2) ownership vs remoteness, (3) involvement vs detachment
MANAGING EFFECTIVE CHANGE STRATEGICALLY - COMMUNICATION TECHNIQUES
What is communication?
While the technical communication process itself may not involve any direct change, as soon as individuals are involved, the problem of what is introduced?
An important strategic consideration for the person transmitting is what?
What is there the need to consider?
a two-way process = transmitter and receiver
problem of the variety of differing individual interpretation and understanding = what I believe I am saying to you is not necessarily the same as what you think you are hearing from me
= how to ensure optimal receiving of not just the communication, but also the intention and the meaning of the words being used
consider how a message is best communicated and through the most appropriate channel, according to the person or group receiving the message
MANAGING EFFECTIVE CHANGE STRATEGICALLY - COMMUNICATION TECHNIQUES
A significant part of any strategic plan must be what?
What must be built into every strategic plan?
When developing strategy, it is essential to stop and think about what?
What is the Johari window model?
how that plan is communicated, knowing that a listener will create their own meaning and interpretation (based on their own experience and knowledge)
When to communicate and what to communicate = no ideal time, other than to ensure that every effort has been made to communicate to relevant parties ahead of the need for their involvement within the anticipated strategic change
the most appropriate method of communication = consider the time factor involved. How quickly do you need someone to understand and react to something? (electronic methods are increasingly dominating communication)
developed by Luft and Ingham = by plotting the dimensions of the known and the unknown with that of ourselves and others it helps us to identify, consider and challenge where the disconnect happens in our communication with others
MANAGING EFFECTIVE CHANGE STRATEGICALLY - COMMUNICATION TECHNIQUES
In the Johari window model, what are the 4 different communication dimensions?
(1) Arena = known by self and known by others = an area where there is open communication between all individuals concerned; subjects can be openly challenged as all parties have a good understanding and knowledge
(e.g. me, an accountant, talking to another accountant about balance sheets)
(2) Blind spot = unknown by self and known by others = an area where we, as a communicator, need to seek additional knowledge from other people to ensure that we have a full understanding and thus enable better communication
(e.g. a HR manager asking me, an accountant, for tax advice without having given any specific details)
(3) Façade (AKA hidden area) = known by self and unknown by others = can allow us, as a communicator, to dominate the decision-making and potentially abuse our leadership power
= objective must be to help others understand in order to enable better communication
(e.g. me, an accountant, talking to the HR manager about the details of a balance sheet I have been studying)
(4) Unknown = unknown by self and unknown by others = an area of uncertainty where all parties have limited or no real knowledge or information and therefore there is the risk of incorrect decision-making
Objective = better knowledge and information through research or the introduction of additional people = external consultant could play a useful role in the strategic change process
(e.g. me, an accountant talking with the HR manager about how we might mend the plumbing, a subject neither of us know anything about)
MANAGING EFFECTIVE CHANGE STRATEGICALLY - METHODS FOR MANAGING CHANGE
What are the 8 methods for managing change?
The following approaches will be useful in different communication circumstances; these might be separate strategic change processes, or different approaches may be required during the same strategic change process:
- Education
- Participation
- Facilitation
- Support
- Ownership
- Negotiation
- Force
- Manipulation and coercion
MANAGING EFFECTIVE CHANGE STRATEGICALLY - METHODS FOR MANAGING CHANGE
EDUCATION - What is an important part of the communication process in the management of change?
What will its effectiveness be based on?
There will always be areas where people need to learn. Those who lead the change process need to identify what?
Name an example of an opening statement.
PARTICIPATION - Why is this method useful?
What is the risk and the problem?
Name an example of an opening statement.
(1) Education = the process of facilitating learning is an important part of the communication process in the management of change
*its effectiveness will be largely based around the culture of the organisation and the readiness of the learners to accept the process
*identify good teachers for this process, recognising that they themselves might not be the best at this task
Opening statement = ‘welcome to today’s learning workshop, it is important that you understand the changes that have been made to this process’.
(2) Participation = when people are able to participate in different stages of strategic change, they are far more likely to become part of the change rather than reject it
*risk = people will find change solutions based around current practice and culture rather than be prepared to consider alternative approaches
*problem = not always possible to involve people in the early stages of strategic change planning in order to maintain confidentiality.
Opening statement: ‘we would like you to consider the changes that we hope to make and how they might impact upon your working day’
MANAGING EFFECTIVE CHANGE STRATEGICALLY - METHODS FOR MANAGING CHANGE
FACILITATION - it is important that what?
Name an example of an opening statement.
SUPPORT - part of the strategic change plan should be to what?
Name an example of an opening statement.
(3) Facilitation = it is important that 1 or more people within a change project team have specific responsibility for facilitating differing communication processes
Opening statement = ‘don’t worry, you will find out what you need to know at the right time’.
(4) Support = part of the strategic change plan should be to identify and communicate the different stages of the process where it is important to garner support from all key people.
Opening statement = ‘please could you think about the suggested changes, so we can understand your concerns in advance’.
MANAGING EFFECTIVE CHANGE STRATEGICALLY - METHODS FOR MANAGING CHANGE
OWNERSHIP - what happens when people are given ownership?
Where does the real benefit of an ‘ownership’ approach come from?
Name an example of an opening statement.
NEGOTIATION - negotiation, when used intelligently, can help what?
Name an example of an opening statement.
(5) Ownership = given ownership = people will take more care and consideration over something that they believe they own, BUT this fails to realise the remoteness with which many people view their work in comparison to their personal life
* real benefit = comes from a culture of inclusion within an organisation
Opening statement = ‘this is your part of the business and it is important that you take ownership for what is happening in your section’.
(6) Negotiation = when used intelligently, can help to plan both sides of a change process, identifying pre-emptively the benefits that can be gained (tangible or intangible) by people participating fully within the perceived changed environment
Opening statement = ‘if you try this new approach you should find that it takes you about 2 hours less per week’.
MANAGING HUMAN RESISTANCE TO CHANGE
What may human resistance to change affect? (4)
When can recognising resistance at times be positive?
affect
1) the planning and design of the strategic change programme,
(2) the consideration of differing forces within the macro and micro environments,
(3) the culture of the organisation, and
(4) the management of strategic change
can at times be positive as a challenge to preconceived notions of required change – and to ensure that all options have been considered
MANAGING HUMAN RESISTANCE TO CHANGE - TYPES OF RESISTANCE
EXPLICIT & OVERT RESISTANCE
Why is this in some ways the easiest type of resistance to deal with?
Name 2 examples.
IMPLICIT, SUBTLE, & DEFERRED RESISTANCE
Why is this type of resistance not always easy to identify?
How can this be evidenced? (4)
EXPLICIT & OVERT RESISTANCE
= the problem will be clear, it will be possible to debate the rights and wrongs of the situation and a solution can be found, although not always on a win-win basis.
E.g., a threat by a workforce to go on strike if certain aspects of the change process are not amended, or alternatively the directors of a company refusing to change strategic direction so as not to appear weak
IMPLICIT, SUBTLE, & DEFERRED RESISTANCE
= may take time for it to come to the surface of an organisation = a change might initially appear to have been accepted, but there could be underlying issues that ultimately may cause longer-term organisational damage
This can be evidenced by:
1. reduced motivation
2. increasing inefficiency
3. risk of mistakes being made, and
4. A reduction in operating margin efficiency, where the decline is only gradual, and the organisation fails to recognise that the decline is aligned with a strategic change that has been made in the past
