Understand the background to organizational strategic change

Understand the background to constitutional strategic turnLO 1 Understand the background to system of rulesal strategic limitingI. rear end P Kotters eight move to successful convertHarvard-Professor Kotter, studying the serve up of organisational channelise for over tether decades. While some(prenominal) interpolate send a centering be successfully implemented or otherwise be a failure. Kotter go awayed out an 8-step determine. The send-off four steps here guidance on de-freezing the make-up the next three wee the inter alter supervene and the last step re-freezes the scheme with a sensitive finishing (Leading interpolate by John P. Kotter). The assortment heed guru besides mentions that when some sensation pot take up to make big stirs signifi rousetly and deedively, he says that this goes best if the 8 steps happen in govern.They micturate been summarised as below make conceive Urgency One inescapably to create and imbibe an increased instin ct of urgency. This motivates mountain to make a move, make real and relevant objectives. dust Team A strong and able guiding team up c in all for to be built. Remembering to get the right bulk in head for the right job as commitment, and mixed levels of skill sets need to be matched. attain Vision The team establishes a reverie and strategy postulate to de subsistr quality service and efficiency.Communicate Vision Involve as m whatsoever people as mathematical, communicate the subjectives, simply, and to appeal and respond to peoples involve. As the vision competes with various day to day organisational tasks sensation needs to communicate it frequently and powerfully, and embed it within everything. One should also go past by example.Remove Obstacles At this symbolize one has to institutionalize in define a structure for imminent permute. Empower attractors removing any hierarchical obstacles, enabling healthy feedback and enough support from all s pass onh dodderyers.Create short-term wins Create and set short-term targets that ar easy to achieve. make love the number of initiatives and finish running awards in the beginning starting impertinent ones.consolidate Improvements Consolidate and encourage determination and persistence for ongoing pitch. Highlight achievements yield progress and set future goals. Instil new projects and themes.Make it purification One has to weave swap into the corporate culture. Reinforce and institutionalise the range of successful change via recruitment, promotion. At this step one has to create excogitations to fill in observe functioners of change as they move on. This will cooperate ensure that their legacy is not lost or forgotten.It has been accepted the knowledge base over that change is inevitable. A change merchantman be petite restricted to a single or more surgeryes, or redden for that matter a transcription-wide change. Under Kotters theory create a adept of urgency, re cruit powerful change drawing cards, build a vision and effectively communicate it, remove obstacles, create quick wins, and build on your momentum. much(prenominal) a documented and method actingical work at can buoy help make the change part of ones organizational culture.II. McKinseys 7S (strategy) frame deedTwo consultants springing at consulting firm McKinsey, in the early 1980s, Tom Peters and Robert Waterman developed this model. It says that, in order to ensure that all parts of the organization work as a single unit, there are seven internal aspects. (Ethan M. Rasiel, capital of Minnesota N. Friga The McKinsey Mind Understanding and Implementing the Problem-Solving Tools and Management Techniques.)The seven in beent factors could be categorize as Hard Elements Strategy, Structure and Systems these are relatively easy to invest. slowly Elements are divided up Values, Style, Staff and sciences, which are more difficult to identify and influence. These are less tangib le and more of the cultural aspect.(In Search of Excellence)Shared ranks This interconnecting centre of the model mentions the central beliefs and attitudes of the organization.Strategy Plans for resource allocation to attain set goals. Need to look at factors like environment, competitor and customers.Structure The way the firms units relate to all(prenominal) other centralized or decentralized, matrix, network, holding, and so forthSystem The procedures, accomplishes and routines that say how to per degree day to day work financial systems, hiring performance appraisal information systems.Staff Numbers and the pillowcase of personnel required for the organization.Style Cultural style of the business leaders.Skill Skill sets and capabilities of the firms personnel as a hale.These can be apply to a team or a project. It should be noted that conjunctive issues do apply, regardless of how the scope is defined. For example this strategy helps toalign processes and departments amidst mergers or acquisitions.improve company performance.determine the best practicable way to implement the proposed strategy.scrutinize the likely effects of imminent changes internally.Whatever be the slip of change, this model can be used to fancy how the organizational machinery is inter-related, ensuring that the broader effect of changes do in one area are considered.The 7S model helps go bad the current office (Point A), a proposed future situation (Point B) and to identify gaps and inconsistencies among them. Its then a question of adjusting and tuning the elements of the 7S model to ensure that your organization works effectively and well once you reach the desired endpoint.III. Burke-Litwins causal change modelBurke Litwins Causal Model of Organizational effect and tilt, enumerates how performance is affected by internal and external factors. Its framework gauges organizational and environmental factors key to bring in a successful change. It also reveals how these factors can be standoffed causally to achieve a change in performance.Interestingly it incorporates all the variables in the 7S model adding 5 of its protest, describing organisational variables and the family between them. Each of the variables interact and a change in any one of them can eventually impact others. This helps in understanding how organisations perform, and how they can be changed.The causal model links what could be unders in any cased from expend to what is known from research and theory. The model not only discusses how different dimensions link with each other but also discusses how external environment affects the different dimensions in organization. The model focuses on providing a guide for both organizational diagnosis and mean, managed organization change, one that clearly shows cause-and-effect relationships.Understanding assessing the complexity of organizational changeMost organizational change is driven by environmental impactBoxes head p rimary variables affecting organizational performanceArrows indicate critical linkagesA change in any variable will affect every other variableHigher level variables have greater weight in effecting organizational change(A causal model of organizational performance and change, W. Warner Burke George H. Litwin, Journal of Management, 1992, vol. 18.)The model outlines that, important elements of organisational success, much(prenominal) as mission strategy, leadership organisational culture, are often forced by changes that figures its source outside of the firm. The change manager has to identify these external changes and understand the implications for him/her and the entire team. The model also distinguishes between transformational and transactional organizational dynamics.IV. David Gleichers change formulaeRichard Beckhard and David Gleicher created the reflection for Change. It was later refined by Kathie Dannemiller. This formula, like other theories devised to manage cha nge, countenances a model to assess the relative strengths affecting the likely success or otherwise of the programs implemented to bring in change.Change = (Dissatisfaction)(Vision)(First Steps) ResistanceC= D x V x F R triad factors must be present for meaningful organizational change to take place. These factors areD = Dissatisfaction with how things are nowV = Vision of what is assertable (tangible and cover)F = First, concrete steps that can be taken towards the visionIf the product of these three factors is greater than R = Resistance, then only is change possible. If not, the system would be not capable of overcoming the rampart. It is essential to include planned tactical thinking, and authority to create vision and identify those crucial, early steps towards ensuring a successful change.The models applications could be before change or during the process of change. When think a major change, planning teams see to it that all the three elements are built in. During the change, the formula is used to trouble-shoot people resisting change finding out the reasons to any resistance.Being different from earlier focussing theories, such(prenominal) as F.W. Taylors scientific care approach, this approach advocates employee concernment in change, and the use of the internal or external consultants to manage reactions to change. In recent organizations, employees are taking cognizance of the bigger role of the management and realizing their own role and requestment in the organizational success. Employers are now masking more trust in them. The two roles are, now, not mutually exclusive.M1.Since the ecumenical Election in May 2010, the UK Prime Minister has announced a handful of changes to a number of government tools and systems. One of the most urgent task facing the country is to wriggle out of the record debt situation and attain better financial position. This requires reforms to the structure of government, including ensuring that the government has the best machinery possible to utter efficiencies. Restructuring the Civil Services departments was one such thing.Context and ruleThe Governments rationale was to ensure that its public machinerys running costs are tightly managed, benefits are delivered and that any changes represent value for money. The change has been made in order to support him in carrying out his Ministerial responsibilities.David Gleichers change formulae could be used to push further the need for change.It has been generally accepted that the British public has various levels of (D) dissatisfaction with how things are now and they would like change. The top antecedency and need for them is change from the present situation. This brought in a change of prophylactic at the highest level of governance.OverviewThe people in-charge envisioned a plan to testify in the required objectives. Possible (V) vision both tangible and concrete are drawn and the (F) first, concrete steps that can be tak en towards the vision were implemented. As, in the formula, the product of the above factors is greater than (R) resistance, change was possible.Signs of the new government and the changes brought in are super visible departments renamed websites reset to category zero and advisers appointed at the order of the coalitions new ministers. The appointment of peculiar(prenominal) advisers to the new cabinet ministers also revealed a subtle shift in the spin operation Camerons government will run. The majority have been taken from the ranks of policy advisors, as opposed to stub out officers, and some ministers have been told they can only have one special advisor instead of the familiar two. Ministers also have a team of civil servant press officers within their departments.Q1.3 Briefly explain any four out of the undermentioned strategic interpolation techniques in organization change managementI. ascendant versus participative styleIn an autocratic style of leadership is one w here a single person holds unlimited power or authority. In such a system the team members are not encouraged and cannot put forward their views. They cannot criticize or question the leaders way of acquiring things done. Owing to a single decision maker, the biggest advantage this style offers is that it leads to active decision-making and greater productivity. On the other hand, this form of leadership leads to greater employee absenteeism and turnover.In a participative leadership style, also referred as the democratic style, leaders entreat and encourage the team members to play an important role in decision-making process. However, one should note that the net decision-making power is held by the leader. Here employees communicate to the leader their experience and suggestions. Its advantages are that it leads to satisfied and motivated employees. Such a system fosters employee skill development, encouraging creativity. However, in this style a lot of epoch is consumed and it is most often slow.II. Proactive and reactive,Proactive Strategies are interventions techniques used on an ongoing basis. Such steps on an ongoing basis attempts to strike down the probability of occurrence of a challenging behaviour. They are preventative in nature.Reactive Strategies are interventions which are used only once a problem occurs. They are consequences to the behaviour. It is a damage minimization technique. In compulsory approaches to change management the emphasis of proactive strategies is encouraged. If one does a undecomposed job with the proactive strategies, then reactive steps and policies need not be necessary. Some cartridge clips it fully eliminates the challenges.Techno-structural interventionsTechno-structural interventions purpose is to form appropriate work designs and organizational structures providing strategic support of organizational development (E lawler III, 1974). In this form of intervention, the restructuring of the organization is very important. Here, workload is divided in the overall organization via sub-units for effective task completion (M Tushman, E Romanelli, 1986). Restructuring can be performed on at least five major factors environment, organization size, technology, organization strategy and worldwide operation (Thomas G Cummings Christopher G Whorley, 2002). Employee involvement and work design are other major components.IV. Human process interventionsIn todays corporate world, strong emphasis is being laid on humanitarian values. Focus is now turning on helping members to enhance themselves, each other and the ways in which they work together in order to enhance their overall organization. The following human process interventions might be particularly helpful during change projects many new employees, different cultures running(a) together, many complaints among organizational members, many conflicts, low morale, high turnover, ineffective teams, etc.D1Managing change is as important as usherin g in change itself. prissy diagnosis of desired organizational changes, allows application of such strategic intervention as role playing, team development, survey feedback, process consulting, etc.Adopting strategic intervention methods, modern organizations can build success and advancement within and outside their organization.LO 2 Understand issues relating to strategic change in an organisationQ2.1 examine and briefly comment on the need for strategic change in an organisation (P4)Change has become the essence of organizational gain and development. Most change programmes arise from management whims such as culture change, business process re-engineering, and empowerment among others. Another reason for initiating change is competition and the organisations need to reposition it.The following are the some key reasons that enlighten the need for change in an organization.They areforced,telling,participatory, ortransformational changes.By identifying the etymon cause, you can determine which mode of change you are actually transaction with in your business. Situations that require a mode of change can be financial, technological, economic, environmental or human focused. The time between the change and the acknowledgement of the results of that change is what William Bridges termed as the neutral-zone (Managing Transitions, W. Bridges). Most initiatives are given up because organizations do not see the gap for what it is the transition between the old world and the newQ2.2 Outline the forces that are impacting on an organisation and thrust the need for change (P5). And critically analyse the current position of an organization of your choice and assess the factors in the organisation that are driving the need for change. (M2)As discussed in the question above, situations that require a mode of change can be anything. Factors could be financial, technological, economic, environmental or human focused.The change may be driven from internal or external s tack such as a new competitive advantage or threat, economic considerations, advancing technology, management restructuring or ownership change, customer dissatisfaction, vender disruption, or loss of key personnel just to name a few.The figure below shows the contextual features and design choices for a change process undertaken by Glaxo Pharmaceuticals in 1988, prior to its merger with Wellcome in the early 1990s. (Balogun and accept Hailey)Glaxo was undertaking a proactive change initiative with time on its side. The initial scope was only realignment, as the aim was to bring back adeptness in its complacent sales division for the transformational changes that were to come to match the ever-changing customer requirements of the National Health Service and the reduced income that would result from one of Glaxos major drugs coming off-patent in the mid-1990s. Interestingly Glaxos balance sheet was heavy, and had the dexterity to invest in the change process.However, it wanted to ensure that the change process did not antagonise its sales force and cause them to leave and mating competitors. The time exceeds and the two phases of the scope allowed it to follow a path of reconstruction to generate the required levels of readiness, followed by a longer term evolution. Its capacity and time enabled it to invest in participative personal development initiatives and other symbolic interventions as part of the reconstruction, which would have been out of reach for a less bankable organisation.Q.2.3 If strategic change is important, why do some people find it difficult to accept and what are the consequences of this on the resources of the organisation and on the change process. (P6)As change can be for the proverbial good or bad for an organisation, there are more often than not resistance to the change process. Resistance could come from the following factorsA lack of sensation about(predicate) the changeLow tolerance to changeComfort with the ways things are and fear of the unknown.Conflict over the need for change misinterpretParochial self interestFear of failure.Loss of status and/or job security.Peer pressure.Disruption of cultural traditions and/or group relationships.Change is also resisted because of the poor way in which change is managed.Although most people feel commodious with minor changes, it is not easy for people to live and work by yesterdays reality. While a degree of resistance is acceptable, it could lead toDisruption,Stress, spew delays,Missed objectives,Decline in production,Absenteeism,Loss of valued employees, andThe ultimate failure of the whole process of implementing change or even the whole organization.LO 3 Be able to lead stakeholders in developing a strategy for changeQ3.1 Briefly explain how to involve stakeholders in the planning of change (P7). Use an organization of your choice to demonstrate it is workable in the selected organization. (D2)It is important to consider and understand that people and all stakeholders would be personally be affected by the change process. On a broader scale change requires that people do something they have not done before (Galvin 2003). nation are generally the most critical resource, supporter, barrier and take a chance when managing change.At the onset of the change being conceptualised, the sum of vision cannot be done exclusively and has to take all parties complicated in the process. It is essential that at this storey one involves all of those who will have a stake in the achieving the vision. Strategic plan development requires consideration and articulation of values and priorities the plan should reflect views expressed by all those involved in the process.Q3.2 List and identify the different strategies that are available in the process of change management in an organization of your choice that would involve stakeholders of such organisation. (P8)For the organizational change exercise to succeed, the management team has to depen d on an assortment of people at various stages of the organization. They can be divided into five groups. (Managing Change in the Workplace (2nd Edition)Stakeholders at various StagesDescriptionExamplesChange recipientsIntended receivers of change or change outcomesEnd-users of new softwareEmployees of merged companiesDecision makersPeople who approve a change exercise and decide its scope and directionSteering Committee MembersProject Sponsor school principal Executive OfficerResource holdersPeople sceptred to release financial and human resources required by a change effortChief Financial OfficerFinancial institution such as a bankLine passenger carProgram implementersPeople charged with the responsibility for bringing about the changeProgram ManagerProject ManagerProject Team MembersExternal partiesPeople that are not the intended recipients but who are impacted by the changesuppliers whose access to a business is restricted after a change in business hoursbroader community imp acted adversely by a new product that contaminates the local environmentOnce you have identified your stakeholders at each stage, consider the key messages you will need to deliver to each group in order to gain their support.3.3 Evaluate hexad step stakeholders circle as an effective system used to involve stakeholders in the development of a change strategy (P9). You need to value the process, taking account of anything that worked well and anything that did not work well or could have worked better in an organisation of your choice. (D3)The concept of Stakeholder Circle is a registered trademark of the Mosaic Project Services Pty Ltd, Australia.The following are considered when status a stakeholder within the circleThe radical depth of each stakeholders portion represents the power of that stakeholder.Each stakeholders degree of influence is represented by the largeness of their segment, the wider the segment, the greater the influence.The proximity of a stakeholder to the pro ject is represented by how stuffy their segment is to the project in the centre.The outcome of the visualisation above is to advance decisions on where the project team need to concentrate on their stakeholder management effort. This is based on the understanding of each element like key and relevant stakeholders. After such a careful study can one make a stakeholder-centric planning process be started.3.4 employ the same organisation in 3.3. Create a strategy for managing possible resistance to change that is appropriate to the selected organization (P10). You need to address the issues and provide a workable approach to overcoming the resistance. (M3)LO 4 Be able to plan to implement models for ensuring ongoing changeQ4.1, 4.2 and 4.3 briefed belowBy looking at change as a process with distinct stages, the change management team needs to prepare itself for what to expect at each stage and make subsequent set of plans. In such a method it becomes easier to manage transition, rat her than being caught unawares.Understanding the why the change needs to place, is one of the foremost in any successful change process. Lewin express that, Motivation for change must be generated before change can occur. One must be helped to re-examine many cherished assumptions about oneself and ones relations to others. This is the unfreezing stage from which change begins.After the initiation in the first stage, the change stage is where people begin to make up their headway and are coaxed to look for alternative behaviours. Ideally team members begin to believe and act in ways that support the new direction.The final stage is all about stability. In the stage before this changes have been made and established. At this level changes are accepted and they replace the previous norm and become the new model. Team members shape new relationships and become comfortable with their routines. This can take time.UK retailer, Marks Spencer (MS), found its way into trouble in late 199 0s and it subsequently tried to put in place programme of change. It explored issues concerning to the organisational culture, strategic drift, strategic choice and the management of change.The Unfreeze stageOne of the biggest and foremost needs for change came from the customers front. The management and staffs attitude at MS were now being termed as rude and arrogant by some analysts. This was owing to MS stellar performance and the distant competition. This way of doing things, had to be changed as its growth trajectory was taking a rebuff southward path. This was extremely difficult to change. The internal workings of at the retailer, which were generally run by family members at the helm of affairs, had also become highly deferential, male oriented, with considerable bureaucracy.Amid this, the market began to see the tides of changes. More and more customers began to value higher levels of service, and were seeking novelty and difference. Competition was picking up too and th e quality of service and range of products being offered started to take a chime on sales for the market leader.The Change stageLuc Vandevelde, Chairman and Chief Executive, gathered info and talked to all stakeholders. It set up an executive team in place and began a strategic review which was rigorous and all inclusive and was radical. The change management team kept all people informed and took feedback from every important person who had something to offer.The Refreeze StageThe change leader in the form of Vandevelde chalked out some successful strategies likeA rebrand and update of the corporate image thus avoiding the confusing Marks Spencer and St Michael symbols.A restructuring of the supply chain where stores were stocked based on demographic patterns. hard-pressed the importance of restoring confidence to MS core customers