STRATEGICALLY
MANAGING CHANGE
Planning & Implementing
Change Initiatives
J. Michael (Mike) Geringer, Ph.D.
O’Bleness Professor of International Strategy
Director, Center for International Business – College of Business
Ohio University, Athens Ohio, USA
email: geringer@ohio.edu
Materials in this packet copyright © by Geringer & Associates, Inc. Do not quote, cite, reproduce or otherwise
infringe without written permission.
We can't solve problems by
using the same kind of thinking
we used when we created them.
Albert Einstein
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THE CHALLENGE OF STRATEGY
IMPLEMENTATION & CHANGE
Change in one major component can
require change in any or all other
components
Thus, strategy formulation,
implementation & evaluation activities
should be performed on continual
basis, not just at yearend or semiannually
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STRATEGY IMPLEMENTATION &
CHANGE
A Challenge: How to Translate &
Communicate Strategic Vision &
Produce Successful Implementation
within Your Organization?
– How to obtain the knowledge, skills &
assets needed?
• e.g., technology developments, distinctive
competencies, distribution channels, service
networks….?
– How to get your organization to
successfully apply these elements?
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BUILDING A STRATEGY
IMPLEMENTATION/CHANGE PLAN
Step 1: Analyze starting conditions
– Urgency: Am I dealing with anticipatory,
reactive or crisis change?
– Personal readiness: How ready am I to lead
the change process?
– Organizational readiness:
• Who will be most affected by change?
• How ready are they?
– Awareness of need for change?
– Skills required for the change?
– Commitment to the desired change?
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STRATEGY IMPLEMENTATION/
CHANGE & COMPLACENCY
“While it is difficult to change a
company that is struggling, it is next
to impossible to change a company
that is showing all the outward signs
of success.
Without the spur of a crisis or a
period of great stress, most
organizations -- like most people -- are
incapable of changing the habits and
attitudes of a lifetime.”
John F. McDonnell, McDonnell Douglas Corp.
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THE STRATEGIC CHANGE CURVE
Anticipatory
Good
Reactive
Crisis
Strategic
Performance
Poor
When to
begin the
change
process?
Time
Source: Nick Fry and Peter Killing, Strategic Analysis and Action,
Fourth Edition, Prentice Hall Canada, 2000
THE STRATEGIC CHANGE CURVE
Anticipatory
Reactive
Good
Crisis
Strategic
Performance
Poor
Things are
going well.
Do we really
need to
change?
Can we
experiment?
Time
Source: Nick Fry and Peter Killing, Strategic Analysis and Action,
Fourth Edition, Prentice Hall Canada, 2000
THE STRATEGIC CHANGE CURVE
Anticipatory
Reactive
Good
Crisis
Strategic
Performance
What needs
to change?
Where do we
start?
Poor
Can we find
an early win?
Time
Source: Nick Fry and Peter Killing, Strategic Analysis and Action,
Fourth Edition, Prentice Hall Canada, 2000
THE STRATEGIC CHANGE CURVE
Anticipatory
Good
Reactive
Crisis
We need to
move fast.
Strategic
Performance
Who can I
Trust?
Where do we
start?
Poor
Time
Source: Nick Fry and Peter Killing, Strategic Analysis and Action,
Fourth Edition, Prentice Hall Canada, 2000
THE STRATEGIC CHANGE CURVE:
IMPLICATIONS BY STAGE
Anticipatory
Good
Reactive
Crisis
Strategic
Performance
Poor
•Clarity of change needed
•Resources available (human,
financial, etc.)
•Time available for
developing & implementing
change
Time
Source: Nick Fry and Peter Killing, Strategic Analysis and Action,
Fourth Edition, Prentice Hall Canada, 2000
BUILDING A STRATEGY
IMPLEMENTATION/CHANGE PLAN
Step 2: Determining required strategic &
organizational changes
• What Changes Must Be Made?
Depends on your firm’s vision,
competencies & capabilities
• What is special about your firm?
• Why is “uniqueness” important in the
marketplace?
• How Urgent is the Required Change?
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BUILDING A STRATEGY
IMPLEMENTATION/CHANGE PLAN
Step 3: Establish conditions for action
– Targets: Which groups should I influence?
– Action priorities: What issues to attack 1st, 2nd, 3rd?
– Change Process-Tactics:
• What leadership style & tactics should I employ?
• How to achieve shared understanding, commitment, & action?
• What structures, systems, processes must change, & how?
• What resources will be needed to enable change & where/how
do I obtain them?
• Can I find visible, early successes to help promote the process?
– Pace: How fast should I move?
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STRATEGY ALIGNMENT &
IMPLEMENTATION/CHANGE PLAN
Implementation/ Priority
Change Target
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Desired
Behavior/
Outcome
Tactics
Sequencing &
to Utilize Pace of Change
Efforts
STRATEGY IMPLEMENTATION
Implementation Process
Questions:
– Who are the people to
carry out the strategic
plan?
– What must be done to
align operations with new
direction?
– How is work going to be
coordinated?
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KEY FEATURES OF LEADING
CHANGE
Purpose
Explain basic
purpose behind
the change
•‘What was the
problem?’
•Who said so &
on what
evidence?
•What would
occur if no one
acted to solve
problem?
•What could
happen to us if
that occurs?
Picture
Paint picture of
how the
outcome will
look & feel
•What is the
outcome going
to look, feel &
sound like?
•How are people
going to get
their work done
& interact with
each other?
•How will a day
be organized?
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Plan
Part
Establish each
Lay out plan for
phasing in the outcome person’s part in plan
& outcome
•Outline steps &
•Show employees the
role & their
relationship to others.
Until they see it they
can’t adjust hopes &
•People oriented to tell
employees how & when fears to the new
their worlds will change reality
•Start with where people •Show employees
what part they play in
are & work forward to
leave the past behind & the outcome & the
transition process
emerge with new
schedules for people to
receive info, training &
support they need to
make transition
attitudes, behaviors &
identity
WHAT INHIBITS EXECUTION?
•
•
•
•
•
•
•
•
•
•
More time than planned
Unanticipated problems
Activities ineffectively coordinate
Crises deferred attention away
Employees without capabilities
Inadequate employee training
Uncontrollable external factors
Inadequate leadership
Poorly defined tasks
Inadequate information systems
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SURFACE POTENTIAL
BARRIERS EARLY ON
Change gets bogged because barriers are not dealt
with soon enough or openly enough to keep change
process moving
Barriers may exist anywhere & everywhere – even
the difficult-to-see places…
Consider how this
change effort will
affect…
• Strategy
• Leadership
• Structure
• Management
• Process
• Resources
• Operating
principles
• Systems
• Culture/behavior • Values/Belief
• Jobs
s
• People
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• Rewards
• Capabilities
IDENTIFY MECHANISMS FOR
PROMOTING INTEGRATION
• Relationship between differentiation &
integration
• Forms of integrating mechanisms
–
–
–
–
–
–
–
Direct contact
Interdepartmental liaison roles
Temporary task forces
Permanent teams
Integrating roles
Integrating departments
Matrix structure
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PLAN FOR THE UNEXPECTED
• Implementation & change efforts are
attempted under uncertainty (& often
high levels of stress)
• Unexpected events & outcomes WILL
occur
• Develop
– appropriate monitoring
systems
– suitable metrics
– contingency plans
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Take the time
to make this
work …
and it will take
time.
© by Geringer & Associates, Inc.