10 managing strategic change Flashcards
(22 cards)
types of change
- incremental
- rapid
- disruptive
- external and internal
causes and pressure to change
internal:
- restructuring
- delayering
- management
- expansion and retrenchment
external: PESTEL
value of change
think of what are the changes made, then think of the value from those changes
-sustain a competitive advantage
-Align its business strategy with changing customer needs & wants
-developing new technologies
-improved productivity and a better work environment
-more appropriate and effective organisational structure = better communication and decision-making
-reputation for embracing change (lead change in the industry)
what shapes a business culture
-shared values, beliefs and norms
-day-to-dahy behaviour of employees(and/or departments)
-leadership style
what are some influences on business culture
-founder (e.g. ikea)
-manager
-size of business
-nature of market/industry
-rewards systems
-organisation structure
-work environment
flexible organisation
to be able to adapt to changes
- restructuring
- delayering
- flexible employment contracts
-organic structure
value of being a flexible organisation
-sustain its competitive position
-reduce risk (risk management)
-make use of opportunity
-survive recession
organic vs mechanistic structure
organic > mechanistic to handle change
- communication style: informal vs formal
- leadership style: democratic vs burecratic
- decision making: decentralised vs centralised/ favour policies and procedures
- hiearchy: flat vs tall
flexible organisations are more likely to adapt organic structure
Lewin’s force field
highlight the forces for and against the change
(driving and restraining forces)
->ensure that a business responds to the environment in which it operates
Kotter and Schlesinger- barrieres to change
4 barriers to change:
- self-interest
- misunderstanding
- low tolerance
- different assessment
Handy’s 4 type of culture
-club
-task
-role
-people
club
characteristics
- centralised power- with the key decision maker
- power built based on the connection with decision maker
- relationship with leader > validity of argument
- require empathy and trust with leader
- speed> accuracy
occurence
- common in smaller businesses
- disadvantage for growing and large businesses
task
characteristics
- results and performance oriented
- expertise, creativity and problem solving skills are valued and encouraged
- require high level of engagement and enthusiasm
- meetings are important
occurence and suitability
- business of employees with high level skills
- creative and problem solving industries
- precondition: right people doing the right task
role
characterisitcs
- formalised and structural
- have clear rules and procedures
- individuals have their fixed position in the hierachy
- stable, efficient, predicitability > individual needs
- precondition: correct policies and procedures in place
occurence
- large and bureaucratic organisations (e.g. government and slow-growth industries)
- managing change in organisations of this type of culture
- best for incremental change, which links well to Kaizen (continuous improvement) to not fall behind and/or improve their operational efficiencies
- barrier to change: departments may not communicate or share valuable information with each other → structured and required to only handle their individual tasks
people
- aka existentialist culture
characterisitics
- individuals have considerable freedom to act independently
- staff are not subordinates
- aim of organisation is to support people (e.g. cooperatives)
- attracts the best in the business(”star”) or when there is a group of equals
occurence
- organisations with high level of specialist technical expertise (e.g. legal and medical fields)
network diagrams
aka critical path analysis
-use of float time (manage resource and tasks)
Kotter and Schlesinger- dealing with change
6 methods of dealing with barriers to change:
-education
-participation
-facilitation
-negotiation
-coercion
-manipulation
strategic planning
long term; focus on the DIRECTION of whole business
process:
-set mission and objectives
-plan
-implement
-monitor and evaluate (for changes needed)
strategic drift
when a business fail to catch up to current trends and environments, leading to the current strategy failing
contingency planning
plan on unforeseen/unexpected events to minimise disruption to business
->risk management
crisis management
handling potentially dangerous/disruptive events for a business
planned vs emergent strategy
planned: intended strategy, influenced by objectives, included in formal business plan
emergent: strategy that ACTUALLY HAPPENS in response to events as they arise (like the change in external environment)
