Change management Use in conjunction with the Corus case study summary THE TIMES 100

Organisational change Change is inevitable in organisations It may be anticipated or unanticipated Firms may need to change their:  Culture  Size  Product range  Production processes  Leadership styles  Target markets  Structure

THE TIMES 100 Internal drivers for change Positive factors: Increase in size of the organisation through acquisition or inflated sales New owners Investment in technology Negative factors Disappointing business performance De-motivated workforce Lack of innovation

THE TIMES 100 Internal drivers for change at Corus What were the internal drivers for change at Corus Strip Products?

THE TIMES 100 External drivers for change Changes in the economy, e.g. moving into recovery in the business cycle Legal and political changes, e.g. the introduction of the Equality Act Social change, e.g. the ageing population Technological change, e.g. growth of the internet Changes in the market, e.g. increasing competition or changing consumer tastes

THE TIMES 100 External drivers for change at Corus What were the main external drivers for change at Corus Strip Products?

THE TIMES 100 Drawbacks of change Costs – some change may require financial investment Loss of focus –managers may lose focus on the core activities of the organisation Resistance to change: ◦Fear of the unknown ◦Job security in question ◦Loss of status for some workers

THE TIMES 100 Barriers to change at Corus What were the main barriers to the change that the company wanted to implement in Corus Strip Products?

THE TIMES 100 Planning for change There are three main questions to answer when planning change: 1.Where are we now? 2.Where do we want to be? 3.How do we get there? The process will involve: ◦Planning ◦Implementation ◦Review

THE TIMES 100 Effective change management Effective change management requires ◦Clear objectives ◦Careful planning ◦Effective communication with stakeholders ◦Participation of workers in the change process ◦Positive leadership ◦Guidance and training ◦Building a change culture

THE TIMES 100 Overcoming barriers to change at Corus How did Corus manage to overcome the resistance of its workforce to the planned change?

THE TIMES 100 Reviewing change A review of the change will discover if... The change has been successful, compared to its objectives Further change is required Without constant review, firms run the risk of losing competitive advantage

THE TIMES 100 Useful resources Change management lesson suggestions and activities Corus case study Corus website