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Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

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1 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Session 6 Developing a Market-oriented Culture and Organisational Strategies for Change The crux session Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

2 SUCCESS Course Objectives
To deliver a coherent and deliverable market oriented internal culture to encourage flexibility which is SMART enough for your employer to understand and give you the go ahead. To follow the CIM guidelines so as not to throw away marks To maximise the LSM on-line resources = SUCCESS Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

3 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Change Management “ Organizational change can be regarded as a continuous process of experience and adaptation aimed at matching an organization's capabilities to the needs and dictates of a dynamic and uncertain environment” ( Burnes 1996) Change management is the process of planning and implementing change within organisations.’ It is very important to evaluate the created change to know its appropriateness or success. Change can be managed through a evaluation process in the each stage. If the change is inapplicable, it is necessary to look for another alternative. If the change is applicable, it can be continued by motivation and rewarding. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 3

4 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Market orientation An organisational culture where beating the competition through the creation of superior customer value is the paramount objective throughout the business •Orientated towards customer •Alert to competitive situation •Co-operation between functions •Emphasis on profit, not turnover •Responsiveness to changes Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

5 Creating a market oriented culture
Intelligence and knowledge Value creation Communication In order to create or shape a marketing oriented culture, management should promote the following aspects within the organisation; Intelligence and knowledge Organisation should be knowledgeable about the trend in the marketing environment and through marketing research and effective knowledge management systems. Value creation An effective knowledge management system, will guide the organisations for a successful marketing practices that create higher value for their stakeholders. For example, avoiding or reducing the cost of product failure, differentiating the products according to the customer preferences. Therefore, it is important that each and every element in the value system to support for creating the marketing oriented approach. Communication Though a proper marketing communication, organisations could create, build and maintain corporate and brand reputation, build relationship with its stakeholders, effect (Stimulate) market demand, position the product/service amongst the competitors’ market offering, etc. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

6 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Organisation Culture  “…the philosophies, ideologies, values, beliefs, assumptions, attitudes, expectations and norms shared by members of the organisation.” Hellreigel et al (1992) It includes the following: Observed behaviour   Norms shared by working groups   Dominant brand values   Employee and Customer policies   Rules that newcomers must learn to become accepted   Physical environment and interaction with external stakeholders According to Schein (1984) corporate culture is the pattern of basic assumptions that a given group has invented, discovered or developed in learning to cope with its problems of external adaptation and internal integration, and that have worked well enough to be considered valid, and therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems. In other words, corporate or organisational culture is ‘the way we do things around here’. Organisational culture describes the set of values and beliefs of a society that have become a way of life for its members. Such values and beliefs are formed over a long period of time and are the outcome of a number of influential individuals and key events in the various stages of that society. (© Dr George Panagiotou 2009) Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

7 The Cultural Web J&S Organisational Structures Power Structures
The Paradigm Organisational Structures Power Structures Symbols Control Systems Rituals and Routines Stories and Myths External or internal events and/or people that the members of the company talk about indicate organisational values. The type and style of organisational logos, premises, staff facilities, uniforms, dress codes and communications highlight cultural characteristics. The pockets of real power held by individuals that does not necessarily includes members of the management structure but it can rather be any influential individual within the organisation. Formal and informal structural systems that define relationships and activities that, consequently, influence organisational power structures. The adopted control processes and methods such as financial, systems, service and quality underline the perceived importance of specified activities to the organisation. Source: Johnson Gerry (1992) Formal and informal events such as employee of the month competitions or special social gatherings suggest preferred behaviour in the organisation. Johnson attempted to map the key features of organisational culture. He identified six parts that in their totality make the paradigm and named the framework The Cultural Web, as illustrated in the figure above. © Dr George Panagiotou 2009 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

8 The McKinsey 7s fundamental to apply
Super ordinate goals Shared values Strategy Staff Structure Styles Systems Skills Structure Structure refers to the hierarchy and the division of tasks in the organisation. Strategy Strategy is how the organisation competes in the market place. Systems Systems include accounting systems , human resources systems, IT systems etc Shared values Shared values are the guiding principles for the staff of the organisation. Staff Staff refers to the people of the organisation. Having the right staff is important for any organisation. Style Style refers to the ways of working and leadership style of the management. Skills These are the key competencies of the staff of the organisaton. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

9 In Search of Excellence (Peters and Waterman)
Close to customer - learn from their customers and proven to be success though differentiation Productivity through people - consider people as a root for quality and productivity Hands on, value driven - regularly monitor the achievement of the values Autonomy and Entrepreneurship - create many leaders and innovators Simultaneous loose-tight properties - simultaneously are centralised and decentralised. Simple form, lean staff - mostly have simple structures and systems Stick to the knitting - favour their comfort zone A bias for action, active decision making - "Do it, fix it, try it." One of the international best selling book, “In search of Excellence”, written by Tom Peters and Robert H. Waterman explore the management discipline used by the leading companies in 1980’s, with long term profitability and continous innovation . This book discuss 9 themes that are common in the selected successful companies. Those are; Close to customer – These companies learn from their customers and proven to be success though differentiation. Productivity through people – These companies consider people as a root for quality and productivity. Hands on, value driven – These companies regularly monitor the achievement of the values. Autonomy and Entrepreneurship – These companies create many leaders and innovators. Simultaneous loose-tight properties – These companies simultaneously are centralised and decentralised. Simple form, lean staff – Excellence companies are mostly have simple structures and systems. Stick to the knitting – Most of the successful companies (except for few exceptions) favour their comfort zone. For example, they select the organisation with similar business in the context of growth through acquisition. A bias for action, active decision making – The standard operating procedure of many companies is "Do it, fix it, try it." Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

10 Miles and Snow’s Strategy Typology 1978
The defender – lack of innovation The prospector – first mover advantage The analyser – defend competitive advantage and takes advantages of opportunities The reactor – follows developments Miles and Snow (1978), from an organisational cultural viewpoint, developed a typology of four strategies in order to articulate the varied adaptive capabilities of organisations and their subsequent responses to market events and changes. Consequently, this typology can be used to highlight the mentality of these different cultures in relation to firms’ competitive behaviour, because the very same ethos that formed their specific cultural characteristics also guides their strategic actions. These are the reactor, the defender, the analyser and the prospector. The reactor and defender approaches focus on the internal environment of the firm whereas the analyser and the prospector focus on the external environment. The reactor approach is evident when the company appears to be following developments in the marketplace rather than be prepared, or willing, to be more proactive. As such, long-term strategies are not favoured by the organisation. However, it can also be argued that with this method the company remains flexible and can enjoy last mover advantages having first seen the actions, and mistakes, of others in their quest for leadership. The defender approach is another reactive response and it is, perhaps, characterised more by lack of innovation. It is, however, suitable in relatively stable markets because of their slow rate of change. Consequently, the emphasis is on formal bureaucratic planning and long-term strategies that focus on cost control and internal efficiencies. The prospector approach, on the other hand, is clearly proactive and is focused on the pursuit of new opportunities and first mover advantages. Consequently, the emphasis is on differentiating strategies, and as such, it favours entrepreneurship, collaboration, flexibility and creativity over efficiencies. However, on-going organisational challenges may be the adoption and coordination of diverse know-how, technologies and innovation. The analyser approach is a combination between defender and prospector and, in this case, the company seeks to defend both existing market share and competitive advantages in established markets as well as explore new opportunities. Consequently, activities are more complicated, planning is intensive and coordination efforts are challenging. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

11 Some factors driving change
Internal issues Retention or gain of competitive advantage Cost-savings New senior management External issues Sociological Legal Economic Political Technological Competitive The need for change can be triggered by either internal or external drivers. Customers – Changes in customers basic needs, demographic factors, life stages, habits, usages and attitudes should be identified to identify potential changes. Technology - changes in technology can provide both opportunities and threats to your business model and online presence.  Maintaining Competitiveness - the internet can be invaluable in the delivery of both economy and efficiency to organisations.  If you don't take action your competitors may do so leaving you at a competitive disadvantage. Complying with regulations and industry standards - external regulations particular to your sector may require adherence to certain standards online Economic Factors -  economic downturns may require you do work more efficiently, improve economy or work smarter Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

12 Characteristics of Change
Driving forces. Directors, Stakeholders, opportunities, competitors Restraining forces. Inadequate Cultural change Planning Lack of Employee Involvement Imperfect Communication Strategies Implementing Change is likely to be met with both driving forces and restrain forces. Restraining forces Inadequate Cultural change Planning – Culture is one element that influences any change within the organization. Therefore the established culture may be a barrier to organizational change. Lack of Employee Involvement – As employees are reluctant to change their habits, attitudes and routines, employee involvement may be low towards a change. Imperfect Communication Strategies – Communication is the most important factor, which requires to be perfect in the event of a change within the organization. Most of the time imperfect communication is the barrier to organizational change. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 12

13 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Preparing for change Internal marketing - Current attitude How big a change is needed Who the ‘influencers’ are How big resistance is likely to be Internal marketing mix - Segmentation, product, price, promotion, place Internal marketing may play a key role in the successful implementation and management of change by encouraging adoption of change among employees and removing barriers to change. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

14 Creating an environment for change
Encourage the right attitude Develop a culture that is based on creativity & innovation Provide appropriate recognition and rewards Encourage flexibility Foster employee involvement The following factors are important in creating an environment for change Encourage the right attitude The correct attitude change enables employees to embrace change willingly Develop a culture that is based on creativity & innovation A creative and innovative culture encourages employees adopt change Provide appropriate recognition and rewards Recognition and rewards for embracing change encourages employee commitment to adopt change. Encourage flexibility Flexible organisations are more likely to implement change more successfully Foster employee involvement When employees are more involved in the change they willingly adopt change. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

15 Creating major change (Kotter 1996)
1. Establish sense of urgency 2. Create the guiding coalition 3. Develop a vision and strategy 4. Communicate the change vision 5. Empower broad-based action 6. Generate short term wins 7. Consolidate gains and produce more change 8. Anchor new approaches in the culture V Kurt Lewin (1940’s) Unfreeze – Change- Refreeze (http://www.mindtools.com/pages/article/newPPM_94.htm) Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

16 Possible Effects of Change on Staff
Denial – Employees may refuse to accept the change. Acceptance – Employees grow confident about change and willing to accept change. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

17 Response of Individuals to Change
Acceptance. Indifference. Passive resistance. Active resistance. Certain individuals accept change willingly . Others may be indifferent to change. Certain employees may denote passive resistance while other employees may actively resist change. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 17

18 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Implementing change Pilot scheme Incremental changes ‘Overnight’ - out with the old and in with the new Variations on the above Monitor and review Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

19 A Programme of Organisational Change
Change agent/Champion of Change Inform employees of the purpose. Data-gathering & diagnostic exercise. Strategy development. Secure employee support. Implementation. Control. The fist step in implementing organizational change is to assign a change champion and a change management team. Employees need to be carefully communicated with and the change needs to be successfully implemented. It is also important that change is effectively evaluated and controlled. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 19

20 A Marketing Approach to Change
Tell: people Sell: need for change & vision. Evolve: attitudes, ideas & learning capacity. Involve: people. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 20

21 Internal marketing mix
Segmentation Supporters, opposers, non involved. Different levels of management Product - plan/change Strategy and process of change Job or function may be internal ‘product’ Price - benefits & psychological costs Psychological price - loss of status, uncertainty, loss of productivity Promotion - two way Clear communication essential Different mix - noticeboards, meetings, intranet, newsletters, etc Place - method & timing Information, training etc - channel providing services to the internal customer Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 21

22 Problems in Change Management
Failure to identify need. Failure to identify objectives. Wrong strategy. Not enough resources committed. Bad method of implementation. Bad implementation resulting in non-acceptance. Change may fail due to a range of reasons Failure to identify need. The real need for change may not have been correctly identified. Failure to identify objectives The objectives of change may not have been correctly identified. Wrong strategy. An inappropriate strategy may have been implemented. Not enough resources committed. Adequate resources may not have been allocated for the change Bad method of implementation. The method of implementation may not be correct Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 22

23 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

24 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Agenda Main organisational market approaches and Organisational culture Change management and model of change process Characteristics of change ‘Fit’ between strategy and culture Preparing for change Inter-relationships between organizational culture, environment and market orientation Implementing change Evaluating change management Problems in change management Creating a market oriented culture and communicating shared values International Influences on Management/ Globalisation Environmental Uncertainty and causes of strategic uncertainty Drivers of change Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

25 Main Organisational Market Approaches
Product orientation Product organisation focuses on the product and not on customers and their needs. They believe that production of superior products will lead to products selling themselves. The core vales of a product oriented company include technical expertise, innovation and quality. Marketing orientation A market oriented organisation is focused on the needs of the customer “Marketing orientation is the process by which an enterprise’s target customers’ needs and wants are effectively and efficiently satisfied within the resource limitations and long term survival requirements of that organisation.” Source; Strategic marketing management, planning implementation and control (2005) Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

26 Business Orientations
Characteristics May be found in Sales Sell what is produced Operational targets expressed as turnover not profit Sales function powerful Volume-driven markets with high fixed costs Small/‘young’ organisations Production/Operations Priorities determined by drive for efficiency and internal factors rather than customer needs Operations function powerful Manufacturing (where investment and set-up times are high) Not-for-profit sectors Technology Products/services driven by what technology can deliver ‘Technical’ function powerfu Computer and hi-tech markets Market 5 key characteristics (Narver& Slater -see next slide) Service or competitive markets where customer preference counts Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

27 Charles Handy Cultural Types
Power culture Role culture Task Culture Person Culture Handy (1993) states that there are four main types of culture that can be found in organisations. Power culture can be found most commonly in small companies with less formal procedures and bureaucracy in place. This type of culture is driven from a central source, for example, the founder of the business or a small team of individuals and it is a hands on approach where the central figure is actively involved on all aspects of decision-making.  Role culture can be found in large organisations. It is based on job descriptions, formal rules and regulations and predetermined systems and procedures because of the size and organisational complexity. Task culture is common in matrix organisational structures. Specialists influence decision-making regardless of where they are in the organisation’s hierarchy chain of command, rather than individuals with formal managerial authority. Person culture is mostly present in R&D departments, laboratories and in firms where the individuals have significant functions and responsibility. In this case, individuals are, at large, autonomous and reporting lines and control systems are agreed mutually amongst relevant parties rather than be formal and predetermined. © Dr George Panagiotou 2009 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

28 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Power Orientation Dominating environment Powerful people strive to maintain control Work is divided by function or product Centralisation is paramount Quick decision making but depends upon the ability of management Employees rewarded for effort, success and compliance with values Change is determined by central source of power Organisation generally disregards human values and welfare Highly competitive, tough and abusive, low morale and high turnover in middle layers Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

29 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Role Orientation  Aspires to be rational and orderly Built around defined jobs, rules and procedures (bureaucracy) People are recruited to fit into jobs Rational and logical, stable and predictable Strong emphasis on maintaining the hierarchy and status     Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

30 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Task Orientation Functions and activities are evaluated in terms of their contribution to organisational goals Management is concerned with continuous and successful solution of tasks    Performance is judged by outputs Network based approach, organizational fluidity, rapid, flexible and responsive Expertise is the major source of individual power and authority Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

31 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Person Orientation Culture exists to serve the needs of its members    Organisation provides a service for individual specialists which they could not provide for themselves  Individuals influence each other through example and helpfulness Roles are assigned on the basis of personal preferences and the need for learning and growth The organisation is subordinate to the individuals and depends on the individual for its existence Most often found in societies, professional assocs. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

32 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Inter-relationships between organizational culture, environment and market orientation Organizational culture influences and is influenced by the beliefs, values and norms of each individual in the organization. Culture is therefore consequently difficult to change The environment can get turbulent in a short period of time Organizational culture influences and is influenced by the beliefs, values and norms of each individual in the organization, and therefore is difficult to change. The environment on the other hand is highly turbulent and changes within a short period of time. Therefore to operate effectively, Handy (1986) suggests that an organization's culture should match, or be suited to, its structure. Strategic and cultural fit can be achieved in two ways. It is strategy-maker’s responsibility to select and devise strategies that are compatible with the unchangeable elements of the prevailing culture. At the same time, it is the strategy-implementer’s responsibility to change the cultural aspects that hinder effective execution. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

33 Achieving stronger market orientation
Organizational cultural commitment to market orientation Identification of particular organizational members Power and control; issues Environmental pressures sometimes result in a lack of strategic fit between the organisation and the environment in which it operates. Therefore it is essential to overcome barriers to market orientation and to maintain a very clear market-led, customer-focused perspective achieved through effective market sensing and suitable organizational structure. To achieve stronger market orientation organizational culture must committed to the market orientation and the members of that organization should identify the requirements of the market orientation. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

34 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Shared value "The only thing that works is management by values. Find people who are competent and really bright, but more importantly, people who care exactly about the same things you care about.“ - Steve Jobs Shared value is the beliefs, principles and concepts that emphasise the organisational culture which direct the behaviour and decisions of the a particular organisation. Shares values are always positive, but most mostly they are inspirational. Internal marketing communication plays a vital role in promoting shared values within an organisation. First, organisation should decide what the right values are for the organisational success. In order to ensure that the employee understand the values and vision of the organisation, it is important to clearly define them. These values sometime be similar in two organisations. However, the way particular organisation encourage to share these values and to display the desired behaviour decide, the winners. Organisation then required inform and reinforce the employees though a formal document and training programmes. Davidson (2002) suggests seven best practices to align the organisations with all its stakeholders within the environment. Define organizational purpose and understand and link need of key stake holders Establish a clear, distinctive vision that is customer related, and is ambitious in terms of the organizations ability to achieve it Build strong values to support the vision based on key factors for success. It is essential that values are turned into measurable practices Communication is about leaders winning the hearts and minds of senior managers who will then cascade this through the organization. Organizational structure should facilitate vision and values and the latter should influence recruitment training, reward and promotion. Link branding to vision and values and ensure this addresses the needs of stakeholders Measure committed customers, motivated employees and satisfied financial providers as a means of assessing how effectively vision and values are implemented Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

35 Punctuated Equilibrium
Environmental Change For example changes occurring in the wider economic environment or in the organisation’s industry. Strategic Fit Strategic Wear out Strategic Drift Punctuated equilibrium is the incremental process of strategy development in order to maintain performance in relatively stable environmental conditions, followed up by fundamental changes, so as to adapt to new environmental conditions. This theory suggests that organisations develop through long periods of stability (equilibrium periods) in their basic patterns of stability that are punctuated by relatively short bursts of fundamental change (revolutionary periods). Consequently, revolutionary periods disrupt patterns of established activity and create the bases for new equilibrium periods (Romanelli and Tushman, 1994). Strategic fit is how suitable are the organisation’s resources, capabilities and practices in relation to external environmental conditions. This stage is the continuous stage of management. The Continuous stage of management is the maintenance of the initial adaptation of practices that reflect the characteristics of the business environment in order to ensure strategic fit. As the environment changes, organisations adjust their practices and adopt new ways in order to maintain their strategic fit. This stage is the incremental stage. The Flux stage is where environmental conditions have changed over a short period of time and organisations do not know, how to respond to the new changes. At the transformational stage, decisions have been made and the organisation is implementing its new practice. At this stage strategies developed, are suitable in relation to challenges encountered in the external environment, and therefore, the organisation maintains its strategic fit or, they are unsuitable and the organisation is no longer competent thus resulting to a strategic drift (Johnson, 1987) and eventually fail. The gap between the strategic fit and the strategic drift is said to be the strategic wear out where organisations are worn out by their efforts to keep up with environmental change. © Dr George Panagiotou 2009 Continuous stage Incremental stage Flux stage Transformational stage Time Stability and certainty Instability and uncertainty Adapted from Johnson, Scholes and Whittington (2005) Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

36 Environmental Uncertainty
Rate and scope of change in environment Moderate-high uncertainty E.g. Fashion industry High uncertainty E.g. high technology & aerospace firms Low uncertainty E.g. Confectionery manufacturers Low-moderate uncertainty E.g. Chemical industry Unstable Stable Simple Complex Complexity of environment (number of elements and dissimilarity) Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

37 Our understanding of the world we inhabit Quality of our information
Causes of strategic uncertainty ‘Known knowns’ We know what we know‘ ‘Known unknowns’ We know what we don’t know‘ ‘Unknown knowns’ We don’t know what we know ‘Unknown unknowns’ We don’t know what we don’t know Our understanding of the world we inhabit High Low High Low Quality of our information Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

38 What Creates Organisational Change?
Influential organisational players usually initiate change when they become conscious of a performance gap – some disparity between actual and desired performance. External environment Macro-environment Competitive environment Internal environment 5 Ms (men, money, machinery, materials & markets) Contexts: Objectives, Technology, Business processes, Financial resources, Structure, People, Culture & Power. Change is inevitable. Organisations need to change in order to which wish tom remain competitive and survive in the given environment. The following factors play a key role in influencing change in organisations . External environment New technology Changing market conditions and trends Competition Government legislation Internal environment Mergers and acquisitions Changes in organisational structure and operations Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 38

39 Perspectives on change - political
Change often threatens established interests, who will oppose it Success depends on Building power sources Creating alliances and coalitions Manipulating information to support position A political process: Suited to which conditions? Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 39

40 Critical Dimensions of Change
Novel Familiar Core Margin 4 2 3 1 Boddy (2002) analyses the nature of change on two dimensions. Familiar versus novel and marginal versus core. Novel changes are more difficult to implement than familiar changes. Also, core changes are more difficult to implement that marginal changes that affect the periphery of the organisational operations. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 40

41 External Consultants for Managing Change
Benefits Specialist knowledge. Previous experience. Independent referee. Neutral. Not tied by status or rank. Objective. External consultants can be employed by organisations for managing change effectively. The provide organisations with many advantages such as specialist knowledge and experience which may not be available within the organisation. External consultants are also impartial. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 41

42 External Consultants for Managing Change
Disadvantages Viewed as top management spies. Standard solution. Too academic. Need time to learn. Hiring external consultants may also have disadvantages. As they are external parties they may need time to learn about the context of the organisation. Also these consultants may be academics and may tend to focus on implementing standard solutions. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 42

43 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Globalisation Globalisation of markets (Levitt, 1983) “needs and desires irrevocably homogenised” Implied standard production and marketing Or going local? Local tastes vary, local brands outsell global Much variation to suit diverse tastes (e.g. Starbucks, Coke, Nestle´) Globalisation of production High-wage countries outsourcing supply to cheaper sources – India, China, eastern Europe Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 43

44 Themes in the international context
Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 44

45 Evaluating Change Management
Has change contributed to overall objectives? Has the problem been solved? Have the behavioural changes happened? The reaction of people. The organization needs to carry out an internal (Strategic goals, operations, policies, systems, procedures and processes) and external (customers and competitive behaviour) analysis to reveal the combination of internal and external drivers of change and restraining forces. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 45

46 International Influences on Management/ Globalisation
Changes in consumer expectations Technological change. Deregulation. Regional forces. Markets. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 46

47 Model of Change Process
Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 47

48 Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM
Models of Change Life cycle perspective. Change goes through a series of steps. A rational approach Emergent perspective. Change takes place in an uncertain context Participative perspective. Change relies on those affected being willing to cooperate with the change Political perspective. Change often threatens established interests, who will oppose it Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 48

49 Perspectives on change – life-cycle
Change goes through a series of steps Success depends on managing these efficiently objectives, responsibilities, deadlines, budgets focus on planning and control Many established tools and techniques A rational process: suited to which types of project or conditions? Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 49

50 Perspectives on change - emergent
Change takes place in an uncertain context, and unrealistic to expect outcomes to be close to plan Success depends on Learning during the project Adapting to changing conditions Managing interest groups Plan, but be ready to change See emergent perspective on strategy The emergent approach to change recognizes that the business environment is becoming turbulent and suggests that change is unpredictable. Therefore organisational change is a continuous process of adaptation. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 50

51 Perspectives on change - participative
Change relies on those affected being willing to cooperate with the change Success depends on developing ownership and commitment consulting widely for ideas seeking consensus A democratic process: suited to which conditions? Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 51

52 Dimensions of Change Projects
Core/Marginal Novel/Familiar Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 52

53 Business Orientations
Types of markets Consumer markets Consumer markets are market are markets where products or services are bought by individuals for their own use. Industrial markets Industrial markets are where goods are purchased for business use. Not for profit markets Not for profits markets includes organisations such as charities, schools and hospital where profit making is not the key objective. Second hand market Second hand market is where the used goods are being purchase by or transferred to a latter user. This includes auctions, pawnshops and garage sales. E.g; Ebay Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM

54 Internal Marketing Mix
Product: plan/change Price: benefits & psychological costs. Place: method & timing of announcements. Promotion: two way Product The product is the change itself Price Price is the price staff incurs as a result of accepting the plan. Place Is the place where the communication is delivered. Promotion The mediums that are used to communicate with the employees. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 54

55 Principles of Internal Marketing
Plan implementation. Consider staff needs & present benefits. Identify influencers. Package & promote. Utilise formal & informal communication networks. Internal marketing is important in implementing change. Internal marketing can be used to overcome resistance to change and encourage people to embrace change. Michael G.Warner Chartered Marketer MBA DipM FCIM FIDDM 55


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