Change Management Flashcards
(33 cards)
What are internal drivers of change?
Changes caused by issues inside the organisation
e.g.:
- poor financial performance
- change in leadership
- low employee morale
- inefficient systems
Exam tip: ‘leadership shakeup’ = internal trigger
💡 Example (internal): Starbucks changed store layouts after feedback on poor service flow.
What are external drivers of change?
Changes forced by outside factors
e.g.:
- legal changes
- new tech
- economic shocks
- social / environmental pressures
PESTEL factors = external
💡 Example (external): EU GDPR law forced companies like Meta to change data policies.
What are 4 types or organisation change? (Balogun & Hope Hailey)
Adaption - small, gradual tweaks
Reconstruction - big but non-transformational changes
Evolution - gradual and transformational
Revolution - rapid and transformational
ARER
💡 Adaptation: Apple tweaks iPhone models each year.
💡 Reconstruction: NHS restructured after COVID staffing crises.
💡 Evolution: Microsoft’s shift to cloud-first business over years.
💡 Revolution: Airbnb disrupted hotel industry quickly.
What are the 8 steps in change process?
- Recognise need (identify issue)
- Analyse current state (what’s wrong?)
- Identify change type (ARER)
- Define future state (what we want)
- Design change (what must change?)
- Plan transition (timeline / strategy)
- Manage implementation (community / training)
- Evaluate outcomes (was it successful?)
What are Lewin’s 3 stage of change?
- Unfreeze - prepare the organisation for change
- Change - transition to the new way
- Refreeze - Reinforce and stabilise the change
Example: Banks switching to online services
Unfreeze: Declining branch visits
Change: Launch app-based banking
Refreeze: Close branches, reward digital usage
What happens in the ‘unfreeze’ stage?
Challenge current behaviours, create urgency, and motivate change
What happens in the ‘change’ stage?
Execute the planned changes with
support and communication
What happens in the ‘refreeze’ stage?
Reinforce the change with systems, processes, culture and rewards
What are Kotter’s 8 steps for leading change?
- Create urgency
- Build a guiding coalition
- Develop a vision
- Communicate the vision
- Empower action
- Create quick wins
- Build on the change
- Anchor change in culture
Step 1 - Create urgency
Explain why change is needed now (e.g. falling sales, competition)
Step 2 - Building a guiding coalition
Form a team with influence and credibility to lead the change
Step 3 - Create a vision
Define a clear future goal and direction
Step 4 - Communicate the vision
Share it constantly, through meetings, emails, etc
Step 5 - Empower others to act
Remove barriers and give resources or authority
Step 6 - Create short term wins
Achieve quick results to build momentum
Step 7 - Build on the change
Use the momentum to implement more change
Step 8 - Anchor changes in culture
Make change the new ‘normal’ via values, policies, and leadership
What are the 7 elements of the McKinsey 7S model?
- Strategy - the company’s plan to compete and succeed
- Structure - the organisations hierarchy and reporting lines
- Systems - daily activities and processes that support strategy
- Style - leadership behaviour and how decisions are made
- Staff - the organisations people - numbers, roles, and demographics
- Skills - core competencies
- Shared values - culture / mission / ethical foundation
What is the Cultural Web?
Stories
Symbols
Power structures
Organisational structures
Control systems
Routines & Rituals
What is Force Field Analysis?
A tool to assess change by identifying:
- driving forces (supporting change)
- restraining forces (resisting change)
How do you use Force Field Analysis?
Strengthen the drivers, weaken the resistors, and balance both sides before launching change
What is Theory E?
Change focused on economic value
- restructuring
- cost costs
- shareholder return
What is Theory O?
Change focused on organisational capability
- employee development
- culture
Can E and O be combined?
Yes, but it’s challenging. It means achieving short-term results while investing in long-term health
