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SECTION 10: MANAGING STRATEGIC CHANGE - Coggle Diagram
SECTION 10: MANAGING STRATEGIC CHANGE
MANAGING CHANGE
types of change
internal change
employee attitides
change of leadership
restructuring
external change
changing consumer tastes
political changes
government action
economic influences
competition
technological changes
disruptive change
radical change often rethinking or redesigning a business or project
incremental change
ivlolves introducing many small gradual changes in a business or project
Lewins force field analysis
addresses the issue of change according to the balance of driving and restraining forces
driving forces
positive forces for change
restraining forces
obstacles to change
steps
1 - identify the current situation
2 - identify the desired situation
3 - list all the driving forces
4 - list all the restraining forces
5 - evaluate each of the driving forces and restraining forces giving each one a value
6 - if change is viable develop a strategy to strengthen the key driving forces and weaken the key reastraining forces
flexible orgaisations
value
competitiveness
efficiency
temabuilding
restructuring
a fundamental internal organisational change that alters the role and relationships of those involved
delayering
the prcess of reducing the number of levels of hierarchy in an organisational structure
organic structure
decentralised with flatter and wider spand of control and is likely to adapt easily to change
mechanistic structure
hierachal and bureaucratic with centralised authority and formal procedures and practices
Kotter and schlesingers 4 reasons and 6 ways
4 reasons for resistance to change
self interest
misunderstanding and lack of trust
different assessment
low tolerance of change
overcoming resistance to change
education and communication
facilitation and support
participation and involvement
manipulation and co-option
megotiation and bargaining
explicit and implicit coersion
barriers to change
employee resistance
management behaviour
inadequate resources
organisational structure
MANAGING CULTURE
handy's culture
task culture
job or project orienteated
teams or formed to solve particular probles
provides flexibility
can be diifcult to control
role culture
highly defined structure and roles
clearly delagated authoruty
organisational structure tall and detailed
decision making slow and lacks flexibility
power culture
power radiates from the centre and a few individuals
few rules and little bureaucracy
decision making swift
person culture
people believe themselves to be superior in the business
common in firms of proffessionals
busines depends on keeping key personell
hofstedes national culture
individual v colectionism
is society based on the importance of the individual or the groups within that society I v WE
power distance
the degree to which the less powerful in society expect and accept an unequal distribution in power
high power distance
people acdept hierarchal order
low power distance
people try and level the playing field
indulgence v restraint
a society's attitiude to grattofication
strict social norms or enjoy life and have fun
long term v short term
the value attached by its society to its past and traditions
masculinity v femininity
the tough v the tender
is it based on achievement and assertiveness or cooperation modesty and quality of life
uncertainty avoidance
how society deals with the unknown
high index for uncertainty avoidance
governed by rules
low index for uncertainty
relaxed
importance of organisational culture
a system of shared assumptions values and beliefs that govern how a business operates
identitiy
direction
loyalty
competition
attitude to change
STRATEGIC IMPLEMETNTATION
impact of leadership communication and structure
the value of leadership
committed to the strategy
able to involve and motivate others
able to communicate effectively
the value of communication
may be necassary to evelop a plan of communications and omportance
to talk to employees and shareholders about reasoning
likely to generate greater enthusiasm and commitment
network analysis
a method of planning projects in order to identify the most efficient way of completing them
EST
the earlist time that a particular activity can commence
left to right with the longest duration being added
LFT
latest finishing time by which an activity must be completed if the whole project is not to be delayed
right to left with the longest duration being deducted
critical path
the sequence of activities that must be completed on time if the whole project is not to be delayed
indicated by two small dashes
total float
any spare time that may exist during a project
LFT - duration of activity - EST
implement strategy effectively
a clear understanding of the circumstances
commitment
willingness to change
ability to monitor and measure progress
STRATEGIC FAILURE
planned v emergent strategy
planned
the one that managers intend to implement using a carefully laid plan to achieve the desired position
emergent
an unplanned strategy that develops over time and is based on the belief that change should not be seen as a series of linear events
strategy
difficulties
the overall goals may not be sufficiently understood
could be a lack of capability
leadership fails to provide adequate dierction
unforeseen events
implementation taking longer than anitipated
strategic drift
occurs when a business responds too slowly to changes in its external environment with the result that the strategic plan is no longer appropriate
causes
technological environment
lagged performance
culture
lack of monitoring
divorce of ownership and control
the seperation of ownership and control in a public limited company
corporate governance
the set of systems processes and principles that ensures an organisation is governed by the best interest of all its stakeholders
accountability
fairness
transparency
responsibility
strategic and contingency planning
value of strategic planning
gives purposeful direction to the organisation and outlines measurable goals
identifies and helps build a competitive advantage
assists in maing choices where resources are limited
saves time in a clear prorities are set
value of contingency planning
means planning for the unexpected such as natural disasters or loss of data
allows a quicker response to an unexpected situation
can save time and money
can limit damage
