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Prof. Dr. E.Vatchkova Strategic Management IMPLEMENTATION AND CHANGE.

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Presentation on theme: "Prof. Dr. E.Vatchkova Strategic Management IMPLEMENTATION AND CHANGE."— Presentation transcript:

1 Prof. Dr. E.Vatchkova Strategic Management IMPLEMENTATION AND CHANGE

2 CONTENTS 1.Understanding change 2.Factors, causing change 3.Typology 4.Contextual features of change 5.The process of strategic change 6.Forcefield analysis 7.Overcoming resistance to change 8.Change strategies and tactics 9.Communicating change

3 1. Understanding change Constant process “Status” of contemporary organization Main competitive advantage Means for long-term survival Managerial competence and competency

4 2. Factors, causing change External triggers: – technology – customer’s tastes – Competitor’s activities – Materials – Legislation – Social or cultural values – Economic circumstances

5 Internal triggers to change Job design Product design Office and factory layouts Allocation of responsibilities Technology

6 Typology Typology Individual, group, organizational Innovative, adaptive, radical Reactive, proactive Technological, administrative, people Wanted, compulsory By stages, divisible, trial, reversible, non-reversible Concrete, known, relevant, attractive

7 Adaptive Change Innovative Change Radically Innovative Change “Reintroducing a familiar practice” “Introducing a practice new to the organization” “Introducing a practice new to the industry” A Generic Typology of Organizational Change l

8 Types of strategic change EvolutionAdaptation Revolution Reconstrac tion SCOPE NATURE Transformation Realignment Incremental Big Bang

9 Contextual features TimeScopePreservationDiversityCapabilityCapacityReadinessPower

10 Steps in the change process Levin-Schein model: 1.unfreezing, 2.changing, 3.refreezing Richard Daft model : 1.Need 2.Idea 3.Proposal 4.Decision to adopt 5.Implementation 6.Resources

11 FRAMEWORK FOR MANAGING STRATEGIC CHANGE Diagnosing the change situation Types of strategic changeThe importance of contextOrganizational cultureForcefield Analysis Management styles and roles Styles of managing change Change agency roles: Strategic leaders Middle managers Outsiders Levers for managing change Structure & ControlRoutinesSymbolic processesPolitical processesCommunication Change tactics

12 Force field analysis Identifying forces for and against change 1.What aspects of the current culture might aid change? 2.What aspects of the current culture would block such change? 3.What is to be introduced or developed to aid change?

13 Forcefield analysis PUSHING High-quality service Ethos of hard work Flexibility Devolved services RESISTINGWorkload/overloadFirefightingDepartmentalism Departmental barons Formality of management Stories of “the good old days” Blame culture Deference

14 Political mechanisms in organization ACTIVITYAREASRESOURCESELITES SUB- SISTEMS SYMBOLIC KEY PROBLEMS Building the power base ControlAcquisition Sponsors hip of / Associ- ation with elites Alliance building Team building Building on legitima- tion Time Dualty of ideas Existing elites Overco- ming resistance Withdra- wal Use of “counter- intelli- gence” Breakdown or devision Association with: change agent, Respectedoutsider Foster momentum for change for change Sponsor- ship/ reward of change agent Attack or remove le- Gitimation Foster confuson, Conflict and ques- tionning Striking from too low a power base Need for rapid rebuilding Achieving Comp- liance Giving resources Removal of resis- tant elites Implement ation and collabo- ration Applause/r eward Reassuran ce Converting the body of the organi- sation

15 Change strategies Education and communication Collaboration/participationInventionDirectionCoercion/edict

16 STYLES OF MANAGING STRATEGIC CHANGE I StyleMeans/ContextBenefitsProblems Education & Communi- cation Group briefings assume internalization of strategic logic & trust of top management Overcoming lack of (or miss) information Time consuming Direction or progress may be unclear Collaboration / Participation Involvement in setting the strategy agenda &/or resolving strategic issues by taskforces or groups Increasing ownership of a decision / process May improve quality of decisions Time consulting Solutions / outcomes within existing paradigm Circumstances of effectiveness Incremental change or long-time horizontal transformational change

17 STYLES OF MANAGING STRATEGIC CHANGE II StyleMeans / Context BenefitsProblems Circumstance s of effectiveness Intervention Change agent retains coordination/cont rol: delegates elements of change Process controlled but involvement takes place Risk of perceived manipulation Incremental/non- crisis transformational change Direction Use of authority to set direction & means of change Clarity & speed Risk of lack of acceptance & ill-conceived strategy Transformational change Coercion/edi ct Explicit use of power through edict Successful in crisis or state of confusion Least successful unless crisis Crisis, rapid transformational change or change in autocratic cultures

18 Communication of change 1.Face to face (one-to-one or group) 2.Interactive (e.g. telephone, video, conferencing) 3.Personal “memoing” (e.g. tailored memos, letters) 4.General bulletins (e.g. circulars, announcement on notice boards)

19 Effectiveness of communication RoutineComplex Overly rich communication Causes confusion Rich communication for complex change Routine communication for Routine change Too little information and sensitivity leads to mistrust and lack of commitment EFFECTIVE COMMUNICATION

20 TRENDS CREATING CHANGE in the ………….. Industry Technology: Regulations: Economy: Business: Markets and Customers Competitions: Family and Social issues Trends Impact on …………… Industry Challenges for Human Resource Management Write your ideas for how each trend impacts the ….. Industries and challenges human resource managements


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