Download - Handout Corporate_Strat_Chapter.14 - 2013

06/11/2014

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Strategy in Action14: Managing

Strategic Change

Professor: Ulrich WagnerProfessor: Ulrich Wagner

Learning Outcomes

Identify the scope of a required strategic change

Analyse how organisational context might affect the design of strategic change programmes

Undertake a forcefield analysis to identify forces blocking and facilitating change

Assess the impact of the role and management styles of change agents

Assess the value of different levers for strategic change

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-2

Assess the value of different levers for strategic change, including the management of organisational routines, political and symbolic processes and other change tactics

Identify the pitfalls and problems of managing change programmes

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Premises of Strategic Change

Strategy matters

Context matters


Different approaches to managing strategic change are required

for different contexts

Exhibit 14.1 Key Elements in Managing Strategic Change

Diagnosis ofDiagnosis of context

Change agents

Leversfor

change


Managingchange

programmes

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Diagnosing the Change Situation

Types of change Context of change

Culture web Forcefield analysis


Culture web Forcefield analysis

Exhibit 14.2 Types of Change


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Exhibit 14.3 Context of Change


The Cultural Web

Stories Symbols

Powerstructures

Rituals/routines Paradigm


StructuresControlsystems

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What is a Forcefield Analysis?

A forcefield analysis provides aA forcefield analysis provides a view of change problems that need

to be tackled, by identifying forces for and against change.


Exhibit 14.4 A Forcefield Analysis


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Roles in Managing Change

Change agents Middle managersg g

Strategic leaders

Charismatic

Instrumental

Outsiders

g

Implementation and control

Sense-making

Reinterpretation and adjustment


Outsiders adjustment

Relevance bridge

Advisors

Styles of Managing Change

Education/Education/ Communication

Collaboration/Participation

Intervention

Di ti C i


Direction Coercion

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Levers for Change

Challenging the taken for grantedChallenging the taken for granted

Changing routines

Symbolic systems


Political systems

Other change tactics

Approaches for Managing Change

Theory EEconomic value

Theory ODevelopment of Organisational

capability


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What are Symbols?

S mbols are objects e ents actsSymbols are objects, events, acts, or people that convey, maintain, or

create meaning over and above their functional processes.


Rituals and Organisational Change

Rites of passage Rites of p g

Rites of enhancement

Rites of renewal

Rites of integration

degradation

Rites of sense making

Rites of challenge


g

Rites of conflict reduction

Rites of counter-challenge

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Power and Political Processes

Acquisition of resources

Association withpowerful stakeholders

Development ofSymbolic change


alliancesSymbolic change

What is Turnaround Strategy?

A turnaround strategy emphasizes the gy pspeed of change

and rapid cost reduction and/or revenue generation.


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Elements of Turnaround Strategies

Crisis stabilisation Refocusing

Management changes

Stakeholder support

g

Financial restructuring

Prioritisation of critical i t


Target market clarification

improvement areas

Aspects of Revolutionary Change

Clear strategic directiong

Combined economic and symbolic levers

Outside perspectives

Multiple styles of change management

W k ith i ti lt


Work with existing culture

Monitoring of changes

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Aspects of Evolutionary Change

Empowered organisation

Clear strategic vision

Continual change and commitment to experimentation

Transitional stages

Irreversible changes


Irreversible changes

Sustained top management commitment

Winning hearts and minds

Chapter Summary There are different types of strategic change which can be thought

of in terms of the extent of culture change required and its nature

It is important to diagnose wider aspects of organisational context p g p gsuch as resources and skills that need to be preserved, the degree of homogeneity, capability, capacity, readiness for change, and the power to make it happen

The cultural web and forcefield analysis are useful as means of identifying blockages to change and potential levers for change

Change agents my need to adopt different styles of managing change according to different contexts and in relation to the i l t d i t t f diff t


involvement and interest of different groups

Levers for managing strategic change need to be considered in terms of type of change and context of change. Levers include surfacing and challenging the taken for granted, the need to change operational processes, routines and symbols, the importance of political processes, and other change tactics

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Key Debate: Management of Change

from Top to Bottom?

1 What are the problems associated with top-down1. What are the problems associated with top-down or bottom-up views of change management?

2. If you were a senior executive which approach would you take and in what circumstances?

3. Are the different views reconcilable?


Case : Change at Faslane

1. What type of change is being pursued at F l ?Faslane?

2. Describe the change style of John Howie.

3. What levers for change are being used? What others might be used?

4. What problems of change could occur?


5. Assess the effectiveness of the change programme.

Download - Handout Corporate_Strat_Chapter.14 - 2013

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