Strategic Management
IMPLEMENTATION AND
CHANGE
Prof. Dr. E.Vatchkova
CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
Understanding change
Factors, causing change
Typology
Contextual features of change
The process of strategic change
Forcefield analysis
Overcoming resistance to change
Change strategies and tactics
Communicating change
1. Understanding change
Constant process
“Status” of contemporary
organization
Main competitive advantage
Means for long-term survival
Managerial competence and
competency
2. Factors, causing change
External triggers:
–
–
–
–
–
–
–
technology
customer’s tastes
Competitor’s activities
Materials
Legislation
Social or cultural values
Economic circumstances
Internal triggers to change
Job design
Product design
Office and factory layouts
Allocation of responsibilities
Technology
Typology
Individual, group, organizational
Innovative, adaptive, radical
Reactive, proactive
Technological, administrative,
people
Wanted, compulsory
By stages, divisible, trial,
reversible, non-reversible
Concrete, known, relevant,
attractive
A Generic Typology of Organizational Change
Adaptive
Change
“Reintroducing
a familiar
practice”
Innovative
Change
“Introducing a
practice new
to the organization”
Radically
Innovative
Change
“Introducing a
practice new
to the industry”
l
Types of strategic change
SCOPE
Transformation
Evolution
Realignment
Adaptation
Incremental
NATURE
Big Bang
Revolution Reconstrac
tion
Contextual features
Time
Scope
Preservation
Diversity
Capability
Capacity
Readiness
Power
Steps in the change process
Levin-Schein model:
1.unfreezing, 2.changing, 3.refreezing
Richard Daft model:
1.
2.
3.
4.
5.
6.
Need
Idea
Proposal
Decision to adopt
Implementation
Resources
FRAMEWORK FOR MANAGING
STRATEGIC CHANGE
Diagnosing the change situation
Types of strategic change The importance of context
Organizational culture
Forcefield Analysis
Management styles and roles
Change agency roles:
• Strategic leaders
• Middle managers
• Outsiders
Styles of managing change
Levers for managing change
Structure & Control
Routines
Symbolic processes
Political processes
Communication
Change
tactics
Force field analysis
Identifying forces for and against
change
1. What aspects of the current culture
might aid change?
2. What aspects of the current culture
would block such change?
3. What is to be introduced or
developed to aid change?
Forcefield analysis
PUSHING
High-quality
service
Ethos of hard work
Flexibility
Devolved services
RESISTING
Workload/overload
Firefighting
Departmentalism
Departmental
barons
Formality of
management
Stories of “the
good old days”
Blame culture
Deference
Political mechanisms in organization
ACTIVITY
AREAS
RESOURCES ELITES
SUBSISTEMS
SYMBOLIC
KEY
PROBLEMS
Building
Control
Sponsors
the power Acquisition hip of /
base
Association with
elites
Alliance
building
Team
building
Building
on
legitimation
Time
Dualty of
ideas
Existing
elites
OvercoWithdrawal
ming
resistance
Use of
“counterintelligence”
Breakdown
or devision
Association
with:
change
agent,
Respected
outsider
Foster
Attack or
Striking
momentum remove le- from too
for change Gitimation low a
Foster
power
Sponsorconfuson,
ship/
base
Conflict
reward of
Need for
and ques- rapid
change
agent
tionning
rebuilding
Achieving
Compliance
Implement
Removal
ation and
of resistant elites collabo-
Giving
resources
ration
Applause/r Converting
eward
the body of
Reassuran the organisation
Change strategies
Education and communication
Collaboration/participation
Invention
Direction
Coercion/edict
STYLES OF MANAGING STRATEGIC
CHANGE I
Style
Means
/Context
Education
&
Communication
Group briefings
assume
internalization
of strategic logic
& trust of top
management
Collaboration Involvement in
/ Participation setting the
strategy agenda
&/or resolving
strategic issues
by taskforces or
groups
Benefits
Problems
Overcoming
lack of (or
miss)
information
Time
consuming
Direction or
progress
may be
unclear
Increasing
ownership of
a decision /
process
May improve
quality of
decisions
Time
consulting
Solutions /
outcomes
within
existing
paradigm
Circumstances
of effectiveness
Incremental change
or long-time
horizontal
transformational
change
STYLES OF MANAGING STRATEGIC
CHANGE II
Style
Means
/ Context
Benefits
Problems
Circumstance
s of
effectiveness
Intervention
Change agent
retains
coordination/cont
rol: delegates
elements of
change
Process
controlled but
involvement
takes place
Risk of
perceived
manipulation
Incremental/noncrisis
transformational
change
Direction
Use of authority
to set direction &
means of change
Clarity & speed
Risk of lack of
acceptance &
ill-conceived
strategy
Transformational
change
Coercion/edi
ct
Explicit use of
power through
edict
Successful in
crisis or state
of confusion
Least
successful
unless crisis
Crisis, rapid
transformational
change or change
in autocratic
cultures
Communication of change
1. Face to face (one-to-one or group)
2. Interactive (e.g. telephone, video,
conferencing)
3. Personal “memoing” (e.g.
tailored memos, letters)
4. General bulletins (e.g. circulars,
announcement on notice boards)
Effectiveness of communication
Routine
Complex
Overly rich communication
Causes confusion
Rich communication
for complex change
EFFECTIVE
COMMUNICATION
Routine communication for
Routine change
Too little information
and sensitivity leads
to mistrust and lack of
commitment
TRENDS CREATING CHANGE
in the ………….. Industry
Write your ideas for how each trend impacts the ….. Industries and challenges human resource managements
Trends
Technology:
Regulations:
Economy:
Business:
Markets and
Customers
Competitions:
Family and
Social issues
Impact on
…………… Industry
Challenges for Human
Resource Management
THANK YOU !