International journal of Innovative Research in Management ISSN 2319 – 6912 (July-August 2015, issue 4 volume 6) Strategic management: Improve the Process for Managing Change Talil Hanna Abrhiem, Ph.D. Professor of Business and Technology, Strayer University I hold a Ph.D. in Organization and Management technology with a specialization in Human Resource Management from Capella University and along with that I received a Master of Science in administration (MSA) degree from Central Michigan University. I feel I can contribute my education and strong commitment for learner success. Author’s Note: The information and views expressed in this article are solely those of the author, and do not represent the opinion of Strayer University ABSTRACT This study will discuss how leaders can successfully implement urgency in order to try to change a colleague’s behavior. Often time’s leaders may underestimate how hard it is to drive people out of their comfort zones, overestimate how successfully they have already done so, or simply lack the patience necessary to develop appropriate urgency. A good leader understands the importance of a creating a sense of urgency and will be able to successfully take the pulse of their company and determine what state the organization is in. A sense of urgency should also be implemented when an organization is trying to execute change as well as break through complacency. Keywords: Strategic Plan, Strategic management, Pressures for Change, Management Performance, Managing Change, Communication Skills, and urgency of globalization I define crafting change by having a strategic plan that achieves. A strategy is a plan that understands what it is going to take to exceed expectations in order to achieve success change. A company must have a sense of direction and deliver the best in value and innovation. Managing change is important in helping to coordinate activities across an organization. Strategies provide a sense of direction and framework. A successful strategy involves the what, where, and how. In Jack Welch's "Winning," he explains 1) come up with the big aha for your business to gain a sustainable competitive advantage, 2) put the right people in the right jobs to drive the big aha forward, and 3) seek out the best practices to achieve your big aha, whether inside or out, adapt them, and continually improve them. Welch also explains although best practices do not sound like a strategy, they are sustainable in competitive advantage if you are continually improving them. I think improving best practices is a form of innovation to any organization and this is where growth begins and strategy is starting to become implemented. Strategy boils down to this, finding the best way to become successful. Managing change will impact the way I make decisions because I am always looking for the most efficient way to keep our brand and reputation at the top of its game. Having a solid understanding of what strategy really means will help me to cultivate a culture of successful strategy. At my consulting firm, we are constantly looking for innovative ways to implement programs, promote 1 International journal of Innovative Research in Management ISSN 2319 – 6912 (July-August 2015, issue 4 volume 6) healthy organization, and stay on top of trends. Being part of an elite consulting industry staffing is very important to me. I believe aligning trainers who are masters of their trade or have niches is a way to exceed expectations for our firm base. I would like to design a strategy that as a team we are able to execute and lead from the front. I would like our consulting firm to set the standard by having the best practices and by understanding how to implement successful strategies we will be able to do so. Having a strategy means as an organization and as a team we are not complacent. Strategic plans can make or break a business. They steer the company to their objectives and goals, and by having a strong vision and mission statement as part of the plan, nothing should be left in doubt as the overall direction of the company. When one deviates from the plan, that is where chaos could ensue and businesses may fail. But knowing the steps to a good plan is important and crucial to maintain a successful business. Importance of a Strategic Plan Creating an effective strategy could be critical for the success of a business. And it all begins with a strategic plan. A good plan could send a fledgling business into the stratosphere, but an illconceived one has the potential to sink a business, no matter any previous success. The size of a business does not discriminate; small and large businesses alike should have a strategic plan for success. A plan for one business may be the right direction for another, so it is important to think of not copycatting others’ plans, but adapting one to fit the company’s specific purpose and goals. Many good things can come out of strategic plans. William Cordeiro has laid out a set of benefits for having a good strategic plan. Among them are: the ability to allocate a business’ resources that will place an emphasis on the company’s goals and to be better prepared for a potentially volatile environment outside of their walls (Cordeiro, 2013). A number of organizations aren’t warming up to even holding strategic meetings. Often what happens, according to Olivier Sibony, to avoid the issue, businesses would actually simply throw in the word “budget” into a meeting at random times to make it look like they are loosely talking about strategy, but it is not the case (Sibony, 2012). Another problem deals with confidentiality. Some of the managers may actually try to hide any kind of plan until it is ready to implement; of course this means that the company as a whole will not have input, and could skew the plan to cater to only those few that created the plan in the first place (Sibony, 2012). Another point Sibony makes is about the concept of groupthink, meaning that a company could just go along with whatever other people, especially upper-level management, tells them is a good strategy (Sibony, 2012). In today’s economic climate, companies are under increasing pressure to not only succeed but remain profitable. In light of the Enron/Arthur Anderson scandal, Accounting/CPA companies are under the microscope to succeed. However, in order to maintain sustainable growth accounting firms needs to plan for success. The majority of businesses have written strategic plans that outline how they will achieve sustainable growth and profitability. Accounting businesses either do not have a strategic plan or fail to use the one they created. (Remsen Jr., 2003) This study will examine the importance of a strategic plan, and the value of both a mission statement and a vision statement for accounting firms. Pressures for Change Pressures for change can come from a variety of sources including the environment, the discovery of deviations from standards, new desires and visions of the future, or the fundamental nature of organizations themselves (Palmer & Akin, 2009). 2 International journal of Innovative Research in Management ISSN 2319 – 6912 (July-August 2015, issue 4 volume 6) Businesses don’t plan to fail. They just fail to plan. When a team decide to take a trip, whether the destination is close or far, they need to determine the best route to take to get there. A business’ strategic plan can be likened to road map. A team will have a starting point and an ending point and a lot of options in between. A strategic plan steers the business in a purposeful direction, focusing on its goals and objectives. Accounting firms now have to operate in line with the Sarbanes-Oxley Act. The SarbanesOxley Act (SOX) is administered by the Public Company Accounting Oversight Board (PCAOB). The PCAOB oversees accounting firms and establishes accounting standards. (Bredeson, 2010) Accounting firm must develop a strategic plan with these new regulations in mind. There are several steps to drafting a strategic plan and depending on the size of your organization, they can be extensive. However, the basic steps to drafting a strategic plan are:1) analysis, 2) formation, 3) execution, and 4) evaluation. Analysis involves examining the company’s current condition. A SWOT Analysis will help to determine the internal and external conditions in which you operate. It will give a clear picture of what the company does well and where it needs to improve. A SWOT analysis will also show areas that are beyond the company’s control, such as SOX regulations. (Bailey, 2013) Be honest in your evaluation. Don’t sugar-coat the issues. Formation is the development of the plan itself. This can be accomplished by creating focus groups, brainstorming sessions or company surveys. Company surveys are relatively new but they give feedback to the company of how they are doing. They give a fresh insight into the company from the viewpoint of others. (Rivers, 2011) Execution of the plan is where upper management translates the plan into action items that work hand in hand with day to day operations. Without management buy in, the plan is no more valuable than the paper it’s written on. The plan should not be a “top secret” or a “for your eyes only” document designed only for upper management. It should be shared with everyone in the organization. (Atkinson, William, 2013) The final step is evaluation. The company must evaluation its plan on an on-going basis in order to refine it and measure its success. A strategic plan drafted when the company was initially formed should not be the same the following year or 5 years down the road. As the company grows and additional services are added or discontinued, the plan should be re-evaluated to make sure it is in line with current operating conditions. Ideas of Strategic Partnership A human resource leader must re-conceptualize the human resource role and explore the ideas of strategic partnership and human resource as a source of competitive advantage. There must be frameworks in approaching and managing the workforce. Some of the core competence that needs implementation is personal qualities rather than skills. Core competence is a vital criterion in the selection process and staffing. The specific roles of the employees can be achieved through training, education and experimental development. The reward and recognition systems need re-examination and address the question of resources and speed of change. The company must present broad strategies for growth to harness the technological power to expand the business to more diversified portfolio. The firm must build a good consumer foundation in medical and professional film and imaging products and services. The company must balance and diversify its product to become a leader in digital products market. The plans should include leveraging its strength in growth and presence in the health imaging, commercial markets, improving research and development in million dollar ideas. Accelerating the investments in the commercial 3 International journal of Innovative Research in Management ISSN 2319 – 6912 (July-August 2015, issue 4 volume 6) market and the acquisition of other corporations is a key strategy towards achievement of the revenue goals. Mission Statement The success of any company depends on its customers and how satisfied they are with the services they are being offered. Regardless of whether the customer is internal or external, if they are satisfied with your service, they will become repeat customers. They will extol and praise your company to friends resulting in referral business. This will increase the company’s reputation and increase revenues. On the other hand, if customers are not satisfied, they will never return and they will denounce you to all their friends. Vision Statement The vision statement should be in line with the company’s mission statement of providing exceptional customer service. The vision statement is to differentiate firm services from competition by going the extra mile in preparing annual reports, financial statements and tax returns. Five Key Objectives The five key objectives of the firm should be: 1) KYC – Know Your Customer 2) Understand the industry in which the customer operates 3) Be knowledgeable of governmental regulations 4) Employ the right people for the job 5) Encourage community involvement Why Five Objectives The company’s mission and vision statements deal with providing exceptional customer service. The only way to accomplish this is to first know the customers you deal with. Know the type of business they are in and the services that they require. Being knowledgeable of governmental regulations will help you to guide your customers and provide the best services that will create a happy medium between them and governmental regulators. However, without the best educated and certified employees the vision and mission statement have no value. The foundation of any organization is its employees. The best qualified employees make the best qualified company. Community involvement is good for the company. It will demonstrate that you are willing to give back to the communities in which your employees live and work. As outlined above, all companies should have a strategic plan in place, in particular, accounting firms. A strategic plan can assist firm in developing harmony within the organization. It also helps the firm to properly allocate its resources. With upper management’s support of the strategic plan, vision, and mission statement, the firm can develop sustained profitability and a loyal clientele. Quality execution of a strategic plan often involves much planning and brainstorming. A mission statement and vision statement could draw customers into your business, if it successfully paints a picture of your objectives and goals. When a business decides to make the creation of a strategic plan primary to the success of the business, there is a good chance that it will happen. Not everyone will be on board with it, at first or even at all. But the goal is to bring in everyone in open communication to flesh out ideas and set a specific and clear vision and mission for the company. Many believe a company’s success stems from a great strategy, impeccable marketing, and flawless operations, but researchers have recently learned that people are the primary drivers of success. It’s also important to consider that a flourishing company in today’s economy heavily relies 4 International journal of Innovative Research in Management ISSN 2319 – 6912 (July-August 2015, issue 4 volume 6) on human assets. The economic environment is considered unstable due to the unprecedented change in technology and innovation, which calls for new skills to be put into place quickly and effectively. As a result, making great people decisions not only become significant, but vital for an organization’s survival. The urgency of globalization also requires people decisions to become more challenging. The demand for talented employees is high and the supply is limited, which means soon countries will be struggling for talented people. For that reason, both organizational and professional success is important when making great people decisions. There are three general areas of people management. This includes focusing on the existing line up of strategic talent, practicing the concept of differentiation, and putting the right people in the right places. The most important factor for a manager’s career success is his/her ability to select, develop, promote, and manage the right people. Once a manager becomes skilled at making great people decisions, their value to employing the organization will continually increase as they are appointed to more senior and complex positions. Palmer and Akins states: Images of Pressures for Change Image of Managing Change Director Navigator Caretaker Coach Interpreter Nurturer Pressures for Change Change is a result of strategic pressures and controllable by managers’ ability to direct the organization’s response Strategic change is in response to internal and external pressures. Multiple pressures facing managers will need to be taken into account. Managers have little control over the inevitable pressures on the organization. Managers have little choice in the organization’s actions. Pressures for change are constant and result in the need to develop and shape the organization’s capabilities to better enhance organizational outcomes. Pressures for change are internal and external and managers need to understand and give meaning to these. Pressures for change are large and small and the manager’s role is to enhance the adaptive capacity of the organization. The environmental pressures for change are one way of explaining why change occurs in organizations. Welch says: “Ranking Works Pays 20/70/10!” Jack Welch (retired president of GE) is identified with a performance system for employees he calls “differentiation.” On the street it is known as “Rank and Yank.” The system identifies the top 20% of employees and they are nurtured and rewarded for excelling. The middle 70% are rewarded too but at a lower level. The bottom 10% is told they are not measuring up and if they do not measure up it would be best for them to find other places to work. This approach has been condemned by some but Welch believes a rigorous evaluation system restricts politics. If you wish to encourage staff to research change further, useful sources of information are: Business Week: http://www.businessweek.com/ Economist: http://www.economist.com/ Fast Company Magazine http://www.fastcompany.com/ Forbes: http://www.forbes.com/ 5 International journal of Innovative Research in Management ISSN 2319 – 6912 (July-August 2015, issue 4 volume 6) The purpose of this article: You will learn and gather of this article the achievement of these objectives includes remodels and appropriation of creative innovations in the daily operations or processes of the company. In addition, the change of the organization's worker experience is worth attention. Since employees' experience and competency have a huge impact on the execution of the organization, the organization ought to keep tabs on procedures to enhance workers' experience and eagerness to serve the organization. This would help in the retention of desirable talents that are competitively on demand in the market. Transferring of competencies constitutes the usage of a different competency created in one specialty unit and actualizing it in an alternate unit, normally a gained specialty unit. Then again, leveraging of skills includes making another specialty unit or division utilizing the notable competency that was created in an alternate specialty unit. The Benefit of this article: The benefit of this article is to evaluate the organizational change process related to the principles and practices of various types of organizations. Change processes and techniques used to facilitate change will be examined and applied to systems such as information technology, communication, policy and procedures, corporate culture, and leadership. The key stages of strategy development also involve asking the right questions. The right questions can generate insights in any business. This is an opportunity for businesses to focus on overlooked corners and generate improvements in their business. We can also generate strategy development by determining the strategic objective and identifying the organization's strategic advantages. Both depend on the company's business environment and particular characteristics. Author’s Reflections: Dr. Talil Abrhiem Key players rely heavily on the company's top leadership. The leadership team must possess passion and understand what is required to successfully implement the strategy by setting priorities, aligning organizational resources, and communicating with suppliers, employees, and shareholders. Business unit heads are also key players as they set the strategy. When it comes to change within any organization communication is the key. How you communicate the change to everyone involved will make or break how the people involve respond to the change. One of the commonly cited causes for the lack of success of organizational change is “resistance to change” (Palmer and Dunford, 2009). Resistance to change is the act of opposing or struggling with modifications or transformations that alter the status quo in the workplace. Change within an organization can cause strong responses from the individuals the change impacts. There are many reasons why people have a resistance to change which can include dislike of the change, discomfort with uncertainty, perceived negative interests, an attachment to the established organizational culture/identity, lack of conviction that change is needed, lack of clarity as to what is expected, belief that the timing is wrong, excessive change, belief that the specific change being proposed is inappropriate, belief that the timing is wrong, excessive change, cumulative effect of other changes in one’s life, perceived clash with ethics, reaction to the experience of previous changes and a disagreement with the way the change is being managed (Palmer and Dunford, 2009). Lastly, company specialists play a significant role such as marketing, operations, finance, and engineering. Every link on the team must clearly understand, communicate, and understand the strategy in order to execute successfully. Strong leadership lays the path, but to actively develop a 6 International journal of Innovative Research in Management ISSN 2319 – 6912 (July-August 2015, issue 4 volume 6) strategy you must define the objective and define ways to achieve that objective, based on your competitive advantages. This article really focused on how to put your plans in action across the board with management, communication, and getting everyone on board. Even drafting a plan of how to get everyone on board is extremely important and necessary. Good managers will understand the interrelatedness of three components: dissatisfaction, vision, and change process. These are all essential for success. It's important to keep the efforts, initiative, and enthusiasm high throughout the organization. Mangers will also learn the significance of becoming deeply engaged with developing and defending the competitive advantage. You will be implementing this in your workplace, by always having a very detailed plan on how we are going to implement the strategy. 7 International journal of Innovative Research in Management ISSN 2319 – 6912 (July-August 2015, issue 4 volume 6) References Atkinson, William. (2013, July 1). Strategic Planning: Looking Forward More than One Year. Distributor Focus, pp. A-B. Bailey, R. (2013, April 22-28). Effective strategic planning for your organization. Corridor Business Journal, 20. Bredeson, D. P. (2010). Student Guide to the Sarbanes-Oxley Act. Mason, OH: South-Western Cengage Learning. Cordeiro, W. P. (2013). Small businesses ignore strategic planning at their Peril. Academy of Business Research Journal, 322-30. Palmer, I., Dunford, R., & Akin, G. (2009). Managing organizational change: A multiple perspectives approach (2nd Ed.). New York: McGraw-Hill. Remsen Jr., J. L. (2003, November-December 1). Isn't It Time for Your Firm to Develop a Strategic Plan? Tax Practice Management, pp. 29-30, 46. Rivers, W. (2011, April 1). What is a Strategic Plan and Why Do You Need One? Part 1. Family Business Institute, p. N/A. Sibony, O. (2012). Collaborative strategic planning: Three observations. Mckinsey Quarterly, (2), 9497. Welch, J. & Welch, S. (2005). Winning. New York: HarperCollins About the Author: Dr. Talil Abrhiem I have exceptional teaching skills and a unique ability to motivate students through a positive learning environment and have sincere passion for their success. I possess over thirty years of small business entrepreneurial management and corporate management experience with several Fortune 500 companies. Central to the success of these business activities was the ongoing development of general strategic management leadership capabilities and succession planning programs as well as targeted organizational communications strategies. EDUCATION Ph.D. - Organization and Management Concentration in Human Resource Management Capella University, 2005 225 South 6th Street, 9th Floor Minneapolis, MN 55402 8 International journal of Innovative Research in Management ISSN 2319 – 6912 (July-August 2015, issue 4 volume 6) Master of Science in Business Administration Concentration in Human Resources Central Michigan University, 2002 1200 S Franklin St, Mt Pleasant, MI 48859 Bachelor of Science - Agricultural Engineering Concentration in Soil and Environmental University of Mosul, 1979 Al-Majmoa'a Street, Mosul, Iraq PUBLICATIONS BOOKS Abrhiem, T.H. (2015). Crafting Organizational Change. Germany: OmniScriptum GmbH & Co. KG- VDM Publishing. ISBN-13: 978-3-659-74274-3 Abrhiem, T.H. (2015). Developing Employees for Future Success. Germany: OmniScriptum GmbH & Co. KG- VDM Publishing. ISBN-13: 978-3-659-70560-1 Abrhiem, T.H. (2015). Astute Manager: Maintaining Positive Employee Relations. Germany: OmniScriptum GmbH & Co. KG- VDM Publishing. ISBN-13:978-3-65 40361-3 9- Abrhiem, T.H. (2015). Management Performance through Functional-Level Strategies. Germany: OmniScriptum GmbH & Co. KG- VDM Publishing. ISBN-13:978-3-65967343-6 Abrhiem, T.H. (2014). The Four Bells Small Business Model. Germany: OmniScriptum GmbH & Co. KG- VDM Publishing. ISBN-13: 978-3-659-61981-6 Abrhiem, T.H. (2008). A Successful Arab-American Marketing Strategy. OmniScriptum GmbH & Co. KG- VDM Publishing. ISBN-13: 978-3-639-06716-3 Germany: ARTICLES Abrhiem, T. H. (2015). Organizational Behavior: Vision Attracts the Best People. International journal of Innovative Research in Management, ISSN 2319 –6912 (May-June 2015, issue 4 volume 5). Abrhiem, T. H. (2014). The Role of Parenting Styles in Psychosocial Development Adolescents. Business and Management Review, 3(11), 47-52. Abrhiem, T. H. (2014). The Principle Diagnostic Methods used to devise Intervention: Employee Governance. Business and Management Review, 3(06), 01-11. 9 International journal of Innovative Research in Management ISSN 2319 – 6912 (July-August 2015, issue 4 volume 6) Abrhiem, T. H. (2013). Managing Transformation and Change for the Business Leader. Management Review, 3(02), 14-22. Business and Abrhiem, T. H. (2013). Training on Succession Planning and Policy Decisions: Enhancing Organizational Productivity. Business and Management Review, 2(11), 13-23. Abrhiem, T. H. (2012). Products and services: Creating a sustainable competitive advantage. Business and Management Review, 2(6), 34-45. Abrhiem, T. H. (2012). Ethical leadership: Keeping values in business cultures. Business and Management Review, 2(7), 11-19. Videos by Dr. Talil Abrhiem Resistance to change https://www.youtube.com/watch?v=tmLeRVpVvkU Managing Organizational Change https://www.youtube.com/watch?v=fFAsXRdzkzg Recruiting, Selecting, Training, and Developing Employees https://www.youtube.com/watch?v=ZeQWf0bx1VU Small Business and Entrepreneurship https://www.youtube.com/watch?v=M5K8IR-qno8 Motivation Enhancing Performance https://www.youtube.com/watch?v=653-6JEhwXc The Global Environment-by Dr. Talil Abrhiem https://www.youtube.com/watch?v=EFL93NpQFqk Strategic Leadership, SWOT analysis, and Competitive Advantage https://www.youtube.com/watch?v=ryWQkaHutXo Corporate-Level Strategy: Horizontal Integration, Vertical, and Strategic Outsourcing https://www.youtube.com/watch?v=CRBsNeq52ss 10