shaping implementation strategies
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Shaping Implementation strategies
One of the paradoxes of organizational life is that success often sets the stage for
failure
The trap of success
EnvironmentalDisturbance
Poor external alignment
Outcomes
Decreased customer focus
Increased Cost
Less innovation
Domore of
thesame
Denial &
rationalisation
Decliningperformance
Death spiral
Learning disabled
Success Syndrome
Complacency
Arrogance
Codification
Internal focus
Prolonged period of success
Prolonged period of success
The trap of successSource: Nadler & Shaw, 1995: 11
Most organisations, at some point, will be faced with the need to transform themselves
in order to survive
Even organizations that invest heavily in continuous improvement can become victims of strategic drift.
While they change, they may not change fast enough to keep up with the pace of change in their environment.
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The trap of success
Effective change strategies• Beer, a leading US consultant and professor at
Harvard Business School, refers to two well tried change strategies (Economic and OD) but argues that the most effective strategy is a third way that combines the best of both.
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• Focus on the drive for economic value through tough, top-down, results driven action.
• They involve the imposition of technical solutions to problems that undermine organizational effectiveness.
• Solutions/interventions include:RestructuringReengineeringDrives for efficiencies layoffs
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Economic strategies
• Focus on creating the capabilities required to sustain competitive advantage and high performance.
• These capabilities include:Coordination and team workCommitment and trustCompetencies (technical and leadership)Open communicationsThe capacity for constructive conflictLearning
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Organization Development (OD) strategies
Beer’s third way – a combined Economic/OD strategy
Change strategies that are capable of delivering sustained high performance require:
1. The development of a vision that offers a compelling and balanced business and OD direction
2. The management of key stakeholders to buy time to develop organizational capabilities
3. The adoption of a socio-technical approach that involves the development of down-the-line managers.
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Top management are often reluctant to adopt a combined strategy
• Shareholder interests
• The assumption that the organization’s technical (rather than social) systems determine performance
• The assumption that there is little to be gained from dialogue with employees.
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Economic strategies tend to be favoured when the top team have a mind set dominated by:
THE THEORY & PRACTICE OF CHANGE MANAGEMENT 3rd Edition, John Hayes, Palgrave, 2010
The main differences between economic, OD and combined strategies
1. Leadership2. Focus3. Process4. Reward systems5. Use of consultants
10THE THEORY & PRACTICE OF CHANGE MANAGEMENT 3rd Edition, John Hayes, Palgrave, 2010
Shaping implementation strategiesImplementation strategies need to be internally consistent and compatible with key situational variables
11THE THEORY & PRACTICE OF CHANGE MANAGEMENT 3rd Edition, John Hayes, Palgrave, 2010
Impact of situational variables
Urgent requirement for change. Non-urgent requirement for change.
Desired end state clearly specified from the start.
What needs to be done to resolve problem or exploit opportunity not clear from the start.
Little resistance anticipated Great resistance anticipated
Change managers have access to all the information they need
Change managers need information from other stakeholders
Others have high trust in change managers.
Others have low trust in change managers.
Implementation is not dependant on the commitment of others.
Implementation is highly dependant on the commitment of others.
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Directive Collaborative
THE THEORY & PRACTICE OF CHANGE MANAGEMENT 3rd Edition, John Hayes, Palgrave, 2010
Summary1. Three approaches to implementation
• Economic (drive) strategies• OD (development) strategies• Combined drive and develop strategies
2. The strategies favoured by CEOs
3. Situational variables that need to be considered when shaping implementation strategies
13THE THEORY & PRACTICE OF CHANGE MANAGEMENT 3rd Edition, John Hayes, Palgrave, 2010
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