1. Strategic Change

2. Aims of the Session
To outline key components in the management of change
To introduce key content components in the management of change
To detail the McKinsey 7 S framework

3. Management of Change “There is nothing permanent except change”
Heraclitus of Ephesus (Greek philosopher remembered for his cosmology, BC)

4. Managing Change
“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success than to take the lead in the introduction of a new order of things”
(Machiavelli )

5. Context
Content
Practice

6. Causes of Change Environment Business Relationships Technology People
Shifts in economy; competitive pressures; legislative changes
Business Relationships
New alliances; acquisitions; partnerships, etc may require changes to organisational structures
Technology
Inevitably can change the way an industry needs to operate
People
Senior management change; alterations in staff profiles
Tichy, N. 1983

7. Management of Change Key Elements: Necessity for Change
Types of Change
Timing
Barriers
Culture
Styles
Leadership & Power
Process/ Techniques (Change agents)
Communication
Monitoring & Control

8. Managing Change Involves: new skills new attitudes new products
new processes
new businesses
new paradigms

9. Types of Change Dramatic/ Transformational/ Revolutionary
Incremental/ Evolutionary
Active
Passive

10. Types of Change Corporate Corporate Transformation Revolutionary
Business Scope Redefinition
Scope of Process
Business Network Redesign
Business Process Redesign
Internal Integration
Evolutionary
SBU
Localised Exploration
Time?

11. Emergent Approaches to Change
Learning Theory
Learning organisations perpetually seek change
Team learning; Sharing of views and visions; Exploration of the organisation; Systems Thinking
Senge, P. 1990
Five Factors Theory
Environmental Assessment
Leading Change
Linking Strategic & Operational change
Human resources as assets and liabilities
Coherence in the management of change
(Pettigrew, A. & Whipp, R. 1991)

12. Attitudes Towards Change
Actors of Change
Wait & See
Hope
Uncertainty
Fear
Anxiety
Promoters
Joy
Motivation
Enthusiasm
Opponents
Disappointment
Resignation
Disapproval
Resistance
Uncertain
Indecisives
Consequences of Change
Certain
Positive
Negative
Attitudes Towards Change
Kruger, W. 1996

13. Resistance to Change 3 Inherent Problems
the need to motivate changes in behaviour of individuals
to manage the transition
Lewin’s 3 stage model: Unfreeze; Change; Refreeze
to shape the political dynamics, e.g. power structures
(Pettigrew 1975)

14. Activity
Consider how you reacted to major changes that you have been involved with.
What were the main thoughts and emotions?

15. 10 most common resistors to change
Loss of control
Loss of face
Excessive personal uncertainty
Avoid surprises
Loss of competence
Loss of identity
More work
Past resentments
Unintended consequences
Real threats
Kanter, R. M. 1984

16. Overcoming resistance to change
People issues (approach)
Education & communication
Participation & involvement
Facilitation & support
Negotiation & agreement
Manipulative and co-option
Explicit & implicit coercion
Organisation (& People)
seek areas of agreement
Explore “knock-on” effects
Support key opinion leaders
Identify resistance (real resistance)
Show potential benefits
Do not disguise your feelings

17. McKinsey 7 S Framework
The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you:
Improve the performance of a company;
Examine the likely effects of future changes within a company;
Align departments and processes during a merger or acquisition; or
Determine how best to implement a proposed strategy

18. McKinsey 7 S Framework - Content
Strategy
Skills
Subordinate Goals
(Value System)
Staff
Structure
Systems
Style

19. Applying the 7 S Framework
A detailed analysis is required because the model covers almost all aspects of the business and all major parts of the organisation.
The seven components described are normally categorised as soft and hard components.
The softer components of the model are difficult to change and are the most challenging elements of any change-management strategy.
It is too easy to fall into the trap of only concentrating on the hard factors as they are readily available from organisations' reports etc.
You should not just write about these components individually but also highlight how they interact and affect each other.
This re-inforces the relational element that we have explored in a number of previous models

20. Higgins – 8 S Framework Structure Strategy Systems Subordinate Goals
Environment
Structure
Strategy
Systems
STRATEGIC
PERFORMANCE
Subordinate Goals
(Value System)
= Performance
RESOURCES
Style
Staff
Higgins, 2005

21. Activity We have considered a number of models within the module.
How do you think that they can help to manage change?