1. Chapter 14 Implementing Strategic Change
Strategic Charles W. L. Hill Management Gareth R. Jones
Fifth Edition
PowerPoint Presentation by Charlie Cook
An Integrated Approach
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2. Strategic Change Three major types of strategic change FIGURE 14.1
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3. Stages in the Change Process
FIGURE 14.2
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4. Determining the Need for Change
Recognizing that a gap exists between desired and actual performance of the company.
Analyzing the organization’s current competitive position (SWOT analysis).
Determine the strategic changes necessary to achieve the desired future state for the company.
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5. Determining the Obstacles to Change
Corporate obstacles
Strategic changes alter core inner-workings of firm.
Divisional obstacles
Interdivisional relationships are changed.
Functional obstacles
Strategic change affects the orientation of functions.
Individual obstacles
Individuals feel personally threatened by change.
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6. Organizational Conflict: An Important Obstacle to Change
The struggle between the conflicting goal-directed behaviors of different organizational groups.
Stages in the Conflict Process
FIGURE 14.3
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7. Implementing Strategic Change and the Role of Organizational Politics
Tactics used by strategic managers to obtain and use power to influence organizational goals and further their own interests.
Sources of organizational politics:
Disagreement over goals and means to attain them.
Lobbying for support in the decision-making process.
Personal reasons and ambitions of managers.
Necessity for making decisions by negotiating.
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8. Rational and Political Views of Decision Making
FIGURE 14.4
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9. Effect of Organizational Politics on Performance
FIGURE 14.5
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10. Legitimate Power and Politics
The ability to cause something to be done that would not otherwise have been done.
Legitimate power
The authority a manager possesses by virtue of holding a formal position in the hierarchy.
Authority
The power to resolve conflicts and decide what needs to be done and overcome obstacles to change.
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11. Informal Sources of Power
FIGURE 14.6
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12. Effects of Power and Politics on Strategic Change
Controlling politics to promote change:
Devise organizational structure to create power-balancing arrangements between divisions.
Use corporate staff to influence strong divisions.
Have CEO come to the defense of less powerful divisions.
Reward risk taking and performance.
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13. Managing and Evaluating Change
Top-down change
Strong CEO takes charge of strategy process and moves quickly to implement changes.
Bottom-up change
Top management consults with all levels of managers and, over time, develops a plan for change.
Disadvantage is that it is a slow process.
Advantage is that it overcomes obstacles to change through participation.
Copyright © 2001 Houghton Mifflin Company. All rights reserved.