Prof. Dr. E.VatchkovaProf. Dr. E.Vatchkova

Strategic ManagementStrategic Management

IMPLEMENTATION AND IMPLEMENTATION AND CHANGECHANGE

CONTENTSCONTENTS1.1. Understanding changeUnderstanding change

2.2. Factors, causing changeFactors, causing change

3.3. TypologyTypology

4.4. Contextual features of changeContextual features of change

5.5. The process of strategic changeThe process of strategic change

6.6. Forcefield analysisForcefield analysis

7.7. Overcoming resistance to changeOvercoming resistance to change

8.8. Change strategies and tacticsChange strategies and tactics

9.9. Communicating changeCommunicating change

1. Understanding change1. Understanding changeConstant processConstant process

““Status” of contemporary Status” of contemporary organizationorganization

Main competitive advantageMain competitive advantage

Means for long-term survivalMeans for long-term survival

Managerial competence and Managerial competence and competencycompetency

2. Factors, causing change2. Factors, causing change

External triggers:External triggers:– technologytechnology– customer’s tastescustomer’s tastes– Competitor’s activitiesCompetitor’s activities– MaterialsMaterials– LegislationLegislation– Social or cultural valuesSocial or cultural values– Economic circumstancesEconomic circumstances

Internal triggers to changeInternal triggers to change

Job designJob design

Product designProduct design

Office and factory layoutsOffice and factory layouts

Allocation of responsibilitiesAllocation of responsibilities

TechnologyTechnology

TypologyTypologyIndividual, group, organizationalIndividual, group, organizationalInnovative, adaptive, radicalInnovative, adaptive, radicalReactive, proactiveReactive, proactiveTechnological, administrative, Technological, administrative, peoplepeopleWanted, compulsoryWanted, compulsoryBy stages, divisible, trial, By stages, divisible, trial, reversible, non-reversiblereversible, non-reversibleConcrete, known, relevant, Concrete, known, relevant, attractiveattractive

AdaptiveChange

InnovativeChange

RadicallyInnovative

Change

“Reintroducinga familiarpractice”

“Introducing apractice newto the organization”

“Introducing apractice newto the industry”

A Generic Typology of Organizational Change l

Types of strategic changeTypes of strategic change

EvolutionEvolution AdaptationAdaptation

RevolutionRevolution ReconstraReconstractionction

SCOPE

NATURE

Transformation Realignment

Incremental

Big Bang

Contextual featuresContextual features TimeTime

ScopeScope

PreservationPreservation

DiversityDiversity

CapabilityCapability

CapacityCapacity

ReadinessReadiness

PowerPower

Steps in the change processSteps in the change processLevin-Schein modelLevin-Schein model::

1.unfreezing, 2.changing, 3.refreezing1.unfreezing, 2.changing, 3.refreezing

Richard Daft modelRichard Daft model::1.1. NeedNeed

2.2. IdeaIdea

3.3. ProposalProposal

4.4. Decision to adoptDecision to adopt

5.5. ImplementationImplementation

6.6. ResourcesResources

FRAMEWORK FOR MANAGING FRAMEWORK FOR MANAGING STRATEGIC CHANGESTRATEGIC CHANGE

Diagnosing the change situation

Types of strategic change The importance of context Organizational culture Forcefield Analysis

Management styles and roles

Styles of managing change Change agency roles:• Strategic leaders• Middle managers• Outsiders

Levers for managing change

Structure & Control Routines Symbolic processes Political processes CommunicationChangetactics

Force field analysisForce field analysisIdentifying forces for and against Identifying forces for and against

changechange

1.1. What aspects of the current culture What aspects of the current culture might aid change?might aid change?

2.2. What aspects of the current culture What aspects of the current culture would block such change?would block such change?

3.3. What is to be introduced or What is to be introduced or developed to aid change?developed to aid change?

Forcefield analysisForcefield analysisPUSHINGPUSHING

High-quality High-quality serviceservice

Ethos of hard workEthos of hard work

FlexibilityFlexibility

Devolved servicesDevolved services

RESISTINGRESISTING

Workload/overloadWorkload/overload

FirefightingFirefighting

DepartmentalismDepartmentalism

Departmental Departmental baronsbarons

Formality of Formality of managementmanagement

Stories of “the Stories of “the good old days”good old days”

Blame cultureBlame culture

Deference Deference

Political mechanisms in organizationPolitical mechanisms in organization

ACTIVITYACTIVITY

AREASAREASRESOURCESRESOURCES ELITESELITES SUB-SUB-

SISTEMSSISTEMSSYMBOLICSYMBOLIC KEY KEY

PROBLEMSPROBLEMS

Building Building the power the power basebase

ControlControl

AcquisitionAcquisitionSponsorshSponsorship of / ip of / Associ-Associ-ation with ation with eliteselites

Alliance Alliance buildingbuilding

Team Team buildingbuilding

Building Building on on legitima-legitima-tiontion

TimeTime

Dualty of Dualty of ideasideas

Existing Existing eliteselites

Overco-Overco-

ming ming resistanceresistance

Withdra-Withdra-walwal

Use of Use of “counter-“counter-intelli-intelli-gence”gence”

Breakdown Breakdown or devisionor devision

Association Association with: with: change change agent,agent,

RespectedRespected

outsideroutsider

Foster Foster momentummomentum

for changefor change

Sponsor-Sponsor-ship/ship/

reward of reward of change change agentagent

Attack or Attack or remove le-remove le-

GitimationGitimation

Foster Foster confuson,confuson,

Conflict Conflict and ques-and ques-

tionningtionning

Striking Striking from too from too low a low a power power basebase

Need for Need for rapid rapid rebuildingrebuilding

Achieving Achieving

Comp-Comp-lianceliance

Giving Giving resourcesresources

Removal Removal of resis-of resis-tant elitestant elites

ImplementImplementation and ation and collabo-collabo-rationration

Applause/Applause/rewardreward

ReassuranReassurancece

Converting Converting the body of the body of the organi-the organi-sationsation

Change strategiesChange strategiesEducation and communicationEducation and communication

Collaboration/participationCollaboration/participation

InventionInvention

DirectionDirection

Coercion/edictCoercion/edict

STYLES OF MANAGING STRATEGIC STYLES OF MANAGING STRATEGIC CHANGE ICHANGE I

StyleStyleMeansMeans

/Context/ContextBenefitsBenefits ProblemsProblems

Education Education & & Communi-Communi-cationcation

Group briefings Group briefings assume assume internalization internalization of strategic logic of strategic logic & trust of top & trust of top managementmanagement

Overcoming Overcoming lack of (or lack of (or miss) miss) informationinformation

Time Time consuming consuming Direction or Direction or progress progress may be may be unclearunclear

Collaboration Collaboration / Participation/ Participation

Involvement in Involvement in setting the setting the strategy agenda strategy agenda &/or resolving &/or resolving strategic issues strategic issues by taskforces or by taskforces or groupsgroups

Increasing Increasing ownership of ownership of a decision / a decision / processprocess

May improve May improve quality of quality of decisionsdecisions

Time Time consultingconsulting

Solutions / Solutions / outcomes outcomes within within existing existing paradigmparadigm

CircumstancesCircumstances

of effectivenessof effectiveness

Incremental change Incremental change or long-time or long-time horizontal horizontal transformational transformational changechange

STYLES OF MANAGING STRATEGIC STYLES OF MANAGING STRATEGIC CHANGE IICHANGE II

StyleStyle Means Means

/ Context/ ContextBenefitsBenefits ProblemsProblems CircumstanceCircumstance

s of s of effectivenesseffectiveness

InterventionIntervention Change agent Change agent retains retains coordination/contcoordination/control: delegates rol: delegates elements of elements of changechange

Process Process controlled but controlled but involvement involvement takes placetakes place

Risk of Risk of perceived perceived manipulationmanipulation

Incremental/non-Incremental/non-crisis crisis transformational transformational changechange

DirectionDirection Use of authority Use of authority to set direction & to set direction & means of changemeans of change

Clarity & speedClarity & speed Risk of lack of Risk of lack of acceptance & acceptance & ill-conceived ill-conceived strategystrategy

Transformational Transformational changechange

Coercion/Coercion/edictedict

Explicit use of Explicit use of power through power through edictedict

Successful in Successful in crisis or state of crisis or state of confusionconfusion

Least Least successful successful unless crisisunless crisis

Crisis, rapid Crisis, rapid transformational transformational change or change change or change in autocratic in autocratic culturescultures

Communication of changeCommunication of change1.1. Face to faceFace to face (one-to-one or group) (one-to-one or group)

2.2. Interactive Interactive (e.g. telephone, video, (e.g. telephone, video, conferencing)conferencing)

3.3. Personal “memoing”Personal “memoing” (e.g. (e.g. tailored memos, letters)tailored memos, letters)

4.4. General bulletinsGeneral bulletins (e.g. circulars, (e.g. circulars, announcement on notice boards)announcement on notice boards)

Effectiveness of communicationEffectiveness of communicationRoutineRoutine ComplexComplex

Overly rich communicationCauses confusion

Rich communication for complex change

Routine communication for Routine change

Too little informationand sensitivity leads to mistrust and lack ofcommitment

EFFECTIVE COMMUNICATION

TRENDS CREATING CHANGETRENDS CREATING CHANGEin the ………….. Industryin the ………….. Industry

Technology:

Regulations:

Economy:

Business:

Markets and Customers

Competitions:

Family and Social issues

TrendsImpact on…………… Industry

Challenges for HumanResource Management

Write your ideas for how each trend impacts the ….. Industries and challenges human resource managements

THANK YOU !THANK YOU !