scm assignment

Strategic Change Management

TASK 1.1:

Corporate managers and a lot of businessmen come across many market fluctuations and dynamism. There are many factors that influence this disorder. Some of them are globalisation, liberations and transitioning economies to motivate change. The strategic change management is one of the key initiatives that develop the dynamism used by the managers for the owner of the organisation. The strategic change management involves specifying the vision, mission and the objectives that from the policies and procedures.

Most of the companies are facing a lot of challenges that are caused by a change in internal/external environment of the company like Ritz Carlton. The change itself changes in such a way that it increases the level of insecurity and uncertainty. For the companies to through growth and development they need to have a positive approach towards strategic change management.

Some of the models to be discussed for strategic change are:

Model 1: The first model is the model presented by Kubler-Ross. He has presented the five stages transition cycle.

The initial stages of the cycles are stables at least in terms of reaction they get on hearing a bad news. When compared with the ups and downs to come in the near future, it will still be stable. The denial stage will try to avoid the inevitable. The anger state will outpour the emotions. The bargaining power will try to find its way out. The depressing stage will try to realise the inevitable. The acceptance stage will try to find its way out.

Model 2:

As most of the change management projects will focus on the steps that are necessary for the change in the organisation. The ADKAR model emphasises that successful organisation changes only when the change occurs successfully.

1 | P a g e


The ADKAR model consists of five steps.

Awareness of the need for change in the first step. Planned communication is necessary. When this step will be successfully finished then the employees will get to know why the change is important.

Desire to participate in and support the change is the second step. In this the individuals are able to reach at leave where they can take their decision to support the change and also participate in it.

Knowledge on how to change is the third step. In this the knowledge can be gained through normal training and education.

Ability to implement the required skills and behaviours are the fourth step in the ADKAR model. The ability is basically the difference between the theory and practice.

Reinforcement to sustain the change is the last step in which the efforts to sustain the change are emphasised.

Model 3:

The third model in the strategic change management is the McKinsey 7S model. These models are divided in to hard and soft model.

The hard elements are:

Strategy Structure Systems

2 | P a g e


The Soft Elements are:

Shared Values Skills Style Staff

TASK 1.2:

For the establishment and the development in Ritz Carlton we need to see the economy at its present state and forecasting the future economy. The organisation strategic decision will always be to see the vision of the company and what it can do to develop it. This decision will fall of the shoulders of the senior business officers. The strategic decision will reflect the special vision and the philosophy of the top-level managers.

The corporate business cultures are differing from one organisation to another. No two corporate cultures are alike. The course of novelty that works in one organisations culture need not be the same in the other. To transform one corporate culture into a novel and inventive culture involves change. Hence, the corporate cultures implement the change to create more business.

In the current financial system, competitiveness means info and knowledge than the resources and worldly assets. The main development for all competitive company is to strategically employ their information, assets and knowledge by classifying and relating experience. A business facility to participate on the market is more liable on the skills and associate of its business managers and employees, considered as rational capital, and put to decent use as formulating, and implementing strategies. In the modern managerial level, knowledge evolves fast and the life span of the trade skills is rundown, which means the strength and attractiveness of a company is linked to its skilfulness to find out and include its findings in their strategic management.

The ADKAR model should be established among the employees as the awareness will create a kind of a desire in the stakeholders that the company creates the knowledge and will provide the ability to change. It will also tell us the steps the company will required for future developments. It will also show us how to continue with these skills for sustaining in the market for a longer term.

The McKinsey 7S model has clearly explained all the elements which directly or indirectly affect the company’s decision making process. It is not possible for the organisation to carry the soft elements as it requires some time to accept the kind of change being taken place in the organisation.

Therefore because of the current economic situation, Ritz Carlton may not be able to take the decision on its own and without considering all the aspects as the company will face an unbearable resistance globally. This will definitely not be in favour of the organisations future.

3 | P a g e


Task 1.3:

An organisations progress starts right with the identification of the problems that will be solved within the company or an organisation. This kind of process goes through a different stage and will determine the satisfactory progress they have made. This sort of procedure is cyclic in nature and it terminates only when the desired results are achieved. It can also list down errors and discovery of the best practices which can be implemented on the Ritz Carlton.

The reason most of the business act in response to change is because of the day to day change in the environment. The strategic management plays a vital role in the adjustment process from side to side. It is said that allotting an additional place to information analysis in the strategic management method will facilitate the dynamics to trigger change. Most of the managers and analysts develop a conceptual model in more or less three steps. They are:

Monitoring/ Scanning Data interpretation Response combined three levels of strategic management.

The four strategic intervention techniques in organisation change management are:

Autocratic Vs. Participative Style:

The autocratic style is kind of style in which one single person will hold the powers and authority. In this kind of system the team member got no rights to put forward their views or opinion. They have no right to criticize or question the leader’s way of getting the things done. This biggest advantage of this style is that the decisions are taken very quick. On the other hand, this sort of leadership will lead to greater employee turnover.

In the proactive style, it encourages the team members to play and important role in the decision making process. But the point to be considered is that the ultimate decision making power is in the hands of the leader. The employees have the rights to give their views and opinions to their leader. This will help the employees test their skills and abilities. This encourages creativity. But this sort of process is very time consuming and is often slow.

Proactive and Reactive

The proactive strategies are the strategies that are used on a daily basis. Such strategies attempt to reduce the probability of the occurrence of a challenging behaviour. The proactive are preventative in nature.

The reactive strategies are interventional in nature. These are used only when the problems occur. They are the consequences to the behaviour. This sort of technique is a technique which minimises the loss. The proactive strategies are encouraged as they are positive in nature. If an employee does nice work with the proactive strategies, then the reactive steps and policies need not be necessary.

4 | P a g e


TASK 2.1:

The needs and requirements for change are they main factors which enable Ritz Carlton to develop a strategic change plan. For e.g. if we try to concentrate on customers satisfaction then we really don’t know the choice and preference of the customers. To realise these demands of the consumer and customer are the main aspects we need to focus on while making and mission and vision statement of an organisation. The survival, run and growth of the Ritz Carlton is all depending on the customers. If we are successful in finding and attracting the customers, then the organisation will definitely survive and grow in the market.

The second point here to be considered is that Ritz Carlton should get over their internal weaknesses for example serving the customers. There always have to be enough staff who are active for completely satisfying the customers. There can be a sort of communication problem as most of the countries are becoming a multi-cultural. By one single observation we understand that a sales man fails to understand the customers due to poor communication in English. This sort of problems is to be taken seriously in terms of strategic change as it can be the weakness of the organisation.

Thirdly we need to see the innovation that takes place outside the world and what should be brought inside the Ritz Carlton. The use of modern machine with improved technology might help the organisation to improve the sale. The innovation we bring in the organisation helps us keep the products in a good manner and in a systematic manner which naturally bring down the dissatisfaction factor amongst the customers.

Last but not the least, if a company is suffering from loss and is in a state of decline then it needs to start immediately a new strategy to change as the current strategy has almost failed to operate the business smoothly. The planners should keep in mind the needs that are demanding the change in their organisation which will help them function the operation well.

TASK 2.2:

The research and planning relating to the strategic change should be studied and should access the factors that will drive the need for change. Unless and until we identify such factors, no strategic plan can be proved to be successful. If we focus on the demanding factors for strategic change the leadership of an organisation will be able to find out the sectors and issues upon which we can apply these frameworks.

Three main variables regarding consumer’s attention need to be considered. They are as follows:

Convenience characteristics for buying a product: The customers and the consumers always try to seek the most convenient way to shop. Any sort of inconvenience will bring down the consumers buying interest and this will lead an organisation to lose the customers. Therefore we need to consider the customers convenience when thinking of selling our products and services to the customers.

Product type Features: The customer always tries to keep in mind the kind of products we sell. We should always try to manufacture the right product for the customers so that he finds it interesting to buy it. Any sorts of product below the standards are always rejected by

5 | P a g e


the customer. That is more of a qualitative in nature. This is affecting the business of an organisation strongly.

Price perception products: A lot of customers take care about the prices of the products. If an organisation is trying to sell a product at a much higher level for the customer, then the product is highly undesirable and it will definitely take back the customers interest. Therefore all the factors that will motive the change have to be considered or kept in mind in order to create a dynamic strategic plan for change.

Some of the changes are also driven form the internal and external circumstances like economic consideration, new competitive advantage, advancing technology, ownership change and customers dissatisfaction.

The change in the organisation drives the motivation. It also helps in achieving the vision and the mission of the company. The interference of change will have an effect on one or more areas in the Ritz Carlton. It should be more summarised in these provisions at any point of time. Some of the change drivers are as follows:

Rules and regulations Technological advancement Loss of share market More emerging market opportunities Latest employment pattern New organisational structure Global environmental issues Cost reduction New competitors

TASK 2.3:

The process of strategic change should have more resources than any other ordinary situation. If the resources don’t support the situation then some sort of action should be withdrawn by the leader. No organisation will have unlimited access to resources for the development of strategic change. The assessment of resource implication will give the planners a high level of strategic change which can match with the resource of the organisation.

Ritz Carlton should have all the necessary resources to carry out a strategic change. Resources like knowledge, technology and so on. Otherwise a problem may arise within the strategic change process of an organisation.

A lot of implication will be there on the Ritz Carlton and its operations if the resources are not according to the planned change. The resources involved in the change are the senior members of the organisation, the core planning and implementation team, the users and the kind of technology we use in the business. The implication can be as follows:

6 | P a g e


There can be a problem due to lack of IT infrastructure as this be the cause of their failure and it will prevent them from being forward

If the organisation fails in completely involving themselves in the decision making, then there may be a delay in the implementation. It will delay the project as they were not able to meet the deadline.

If the main tem members for the implementation and planning team are not completely dedicated then it will definitely become difficult for the external consultant to map down the business processes. This will also result in some wrong decision making which in turn be an issue for the organisation when being setup.

There has to be a proper training for the employees so that they complete their task on time and without any hassle.

The cash transitions should also be kept in mind as it may delay the financial process n delay the work.

The organisation will lose the business because of the late response from the users at the other end.

Last but not the least, failure to implement all these will definitely cost a high capital loss to the organisation.

TASK 3.1:

A stake holder is a person, a group of people or an organisation that has a direct or indirect interest or stake in that organisation. He is the one who will be affected by the organisations actions, policies and objectives.

The stakeholder in Ritz Carton plays a very vital role in their day to day being taken place in the organisation. It is important to develop a system that will involve the stake holder during the planning process of change. The system has to be appropriate, easily applicable and should be workable in the organisation. The most important thing is that the important stakeholders should be concentrated as they are the most influential stakeholders. The stake holders include the government, competitors, suppliers, owners and the customers. They can be in the form of internal and external. It is very important for a company to have knowledge of its surrounding as this will help them identify the market segment in order to satisfy and fulfil the customers need. The expectations of the organisation will 100% are increased with profit maximisation, high product quality and good performance, growth in market share and capital investment.

System to involve Stakeholders

It is basically a process of bringing together the stakeholders. The following are the systems:

Configuration system: Most of the organisation involves a certain type of structure, relationship and processes in the way through which an organisation functions. The reasons to configure these challenges are very important for an organisational success.

Functional structure: An organisation should start dividing responsibilities once they start growing. They should divide it based on level, size and complexity. This kind of systems are based on the primary activities have has to be considered by the organisation such as finance, accounting, human resource, marketing, production, research and development.

7 | P a g e


Convergence systems: This kind of systems is where a pervious separated industries start to overlap in terms of technology, activities, products and customers.

Stakeholder Analysis (Mapping)

A stakeholder’s analysis will definitely help an organisation to describe whom they are trying to involve when they start to design a process of change. This also helps in determining the way in which the stakeholders should be included in the organisation. The process will help the organisation to find whose data and info should be considered and who’s to be rejected.

The stakeholder’s analysis has to two axis and four quadrants:

The X axis- influence

The Y axis- power

The quadrants are:

HH- High high

HL- High low

LH and LL are low high and low low

The high power: The sort of people should be kept fully satisfied.

High power, less interested people: it puts enough people at work in order to keep them satisfied.

Low power less interested: These are those sorts of people should be informed adequately so that no major problem should arise.

Low power less interested: These people should be monitored but shouldn’t turn them off with an undue communication.

8 | P a g e


Key players: They should be involved in the process as it will help them increase their effort and also show their level of interest.

Keep informed: This will help the stakeholder to be informed, engaged and updated about the day to day activities being taken place in the organisation. It will help them involve.

Keep Satisfied: The stakeholders should be kept satisfied as they are very important. They should be communicated properly and should be updated frequently.

Minimal effort: The stakeholders should be brought in to participate as it will help them increase their level of interest.

TASK 3.2:

The management strategy is an arrangement to manage the stakeholder based on the level of interest and level of power. It is the main aspect of the organisation to grow and survive by answer back to any kind of environmental changes.

A strategy is basically a direction and a kind of scale for Ritz Carlton in the long term as it will help them achieve an advantage in a changing environment during its formation of resources and competence with an aim and objective of satisfying the stakeholder’s expectation.

A very important phase for Ritz Carlton is to construct an effective strategy for a change. The reason we involve the stake holders is because it brings out a proper solution. The leader is responsible for managing the operations and processes to gain the feedback from the stakeholders as their suggestions are important and are reality based. As we get the feedback form the planning team then extracts the useful information and data for a successful change organisation.

An accepted theory of management give a suggestion that within a group or individual the behaviour and emotional responses to a certain circumstances that are different from one another. The same way the responses to the organisational change are way too different. Some of th changes are adopted and some of the changes are resistant.

Keeping in mind the stakeholders, a strategy has to be developed and formulated. At this point of time we should consider the common accepted strategies of management. They are as follows:

Leverage Strategies: This type of strategy is normally applied to the early adopters with the significant influence in order to develop their support and to utilize their influences to motivate the change among the majority.

9 | P a g e


Engagement strategies: This type of strategy will focus on the majority and the aim and objective is to convert them to be early adopters and is leverage their influence among those with low interest and commitments.

Containment strategy: This kind of strategy is basically to target the unaffected slowcoaches who cannot adjust and adapt themselves because of high skills, knowledge and abilities yet they contribute to change.

Outplacement strategy: The strong and influential resistant slowcoaches are the main candidates for outplacements. The stakeholders are given the opportunity to show their compliance and acceptance with the change process but they fail and then they face very bad consequences.

TASK 3.3:

Implementing a strategy involves the top management and also the end-users, so a correct strategy needs to be shaped to include everyone in the change process in the Ritz Carlton. Change process can start only if the stakeholders are well connected and educated about the importance of bringing the change. They should be well informed, educated and be engaged in the decision making. Their feedbacks should always be taken in account, and all this can be possible only by devising a proper communication strategy. Every stakeholder involved in Ritz Carlton should always be kept in circle on the progress of the project. Stakeholders should always be asked when a key decision needs to be taken. Approval of their feedbacks makes them feel motivated and engaged and then they become the part of the project. Presentation to the stakeholders should always be given on the current and accurate information to keep them updated and to avoid the thoughts by them of being neglected

Resistance to change is part of change process. It is something which can have both positive as well negative impacts on the organisation. Kotter & Schlesinger explained the importance of strategy to handle the resistance in the organisation. As per their theory, the principles are:

Education and Communication: By properly educating and communicating with the concerned stake holders about the change, their misconceptions and confusions can be sorted out without which they are full of questions and worries. People tend to accept the change once they become aware of the change.

Participation and involvement: A strategy need to be devised to facilitate the participation and the involvement of the stakeholders in the change process. This gives them motivation and sense of involvement makes them feel part of the change to which they don’t try to become a resistance.

Negotiation and agreement: When an organisation goes for a strategic change, then lots of things are at stake. And it becomes equally important to move towards change by forming an agreement among all the members and the management through proper negotiations.

Facilitation and support: By facilitating and supporting the people who are initiating and managing the change process, the motivation level of people are increased and boosts their confidence which in turn becomes example for others as well to be a part of change and taking it forward.

10 | P a g e


TASK 3.4:

INDIVIDUAL RESISTANCE:Individually, people may resist, although this is generally limited to the extent of their personal power. For those with lower power, this may include passive refusals and covert action. For those with more power, it can include open challenge and criticism.

COLLECTIVE RESISTANCE:When people find a common voice in organized resistance, and then their words and actions can create a significant threat to the change, even though they are individually less powerful. An organised resistance is usually a sign of a deep divide. People will not go to the bother of organizing unless they have serious issues with the change.

PASSIVE RESISTANCE:Passive resistance occurs where people do not take specific actions. At meetings, they will sit quietly and may appear to agree with the change. They may agree and then do nothing to fulfil their commitments.

ACTIVE RESISTANCE:Occurs where people are taking specific and deliberate action to resist the change. It may be overt, with such public statements and acts of resistance, and it may be covert, such as mobilizing others to create an underground resistance movement.

1. Participation and involvement:It is a strategy which is used when dealing with key stakeholders of the organisation. Participation and involvement is usually adopted when the key stakeholders are neither keen nor interested in company matters and every time the company tries to adopt change for the benefit of the company they resist that change. Using such a strategy can be very helpful to achieve the objectives and on the other hand it is time consuming for the company.

2. Education and communication:Is a strategy which is applied when stakeholders are not aware of benefit of the strategy. It’s important to educate and communicate with the stakeholders so as to get them to understand the reason for the change. The major advantage of the strategy is that the investors will cooperate productively and positively. Using this strategy can be time consuming and costly too.

3. Negotiation and compromise: The strategy of negotiation and compromise take place when there is a group division. By this strategy a company convince the both groups at working together for the benefit of company. It’s also promotes unity which is very good for a company. It is cost effective.Stakeholders should be ready compromise for the benefit of the company.

11 | P a g e


TASK 4.1:

Managing organizational change will be more successful if you apply this simple ideology in Ritz Carlton. Achieving individual alteration will be more successful too if you use the same approach where appropriate. Change must be practical, attainable and quantifiable. These aspects are particularly pertinent to management individual change. Before starting managerial change, there is certain question that is needed to be asked: What do we want to achieve with this change, why, and how will we know that the change has been achieved? Who is exaggerated by this change, and how will they react to it? How much of this change can we achieve ourselves, and what parts of the change do we need help with?

Step One: Create Urgency

Scrutinize opportunities that should be, or could be, subjugated. Start honest negotiations, and give vibrant and convincing reasons to get people talking and thinking. The ways to create urgency are a)Limited Supply (b)Limited Time (C) Reduced Price (d)Added Benefits (e Create an Overwhelmingly Compelling Value

Step Two: Form a Powerful Coalition

To induce people that change is essential. This often takes strong management and noticeable hold up from key people within your organization. Managing transformation isn’t enough – we have to lead it and get those who lead the organization to lead the change.

Step Three: Create a Vision for Change

Our vision for change needs to be simple adequately for people to take hold of and keep in mind.

Step Four: Communicate the Vision

Vision explains some attainment or future state that the association wants to achieve. A vision has to be shared in order to do what it is intended to do - which is motivate, elucidate and center of attention to the work.

Step Five: Remove Obstacles

Accomplishing goals is as much about removing obstacles as it is about creating change. The more obstacles you can remove in advance of making a change, the easier the change will be.

Step Six: Create Short-term Wins

A ordinary mantra of organizations functioning in the direction of deep, systemic mores change is ―it‘s a journey, not a destination.‖ Often this mantra is a foundation of encouragement and support when it feels like transformation isn‘t happening swiftly enough. Change of this degree takes time. In

12 | P a g e


every community, there are opportunities unswervingly connected to the overall effort that are ripe for change today. The plan for short-term wins also needs to be systematic.

Step seven: Build on the Change

Real change runs deep and takes instance. Quick wins are only the commencement of what needs to be done to reach long-term change – make sure you take sufficient time! Introducing one new product using a new scheme is great.

Step Eight: Anchor the Changes in Corporate Culture the market

Last step, to make any change attach, it has to turn out to be part of the core of your association! Your corporate culture often determines what gets done, so the values behind your vision must exist shown in day-to-day work. You should make unremitting efforts to ensure that the change is seen in every aspect of your organization.

TASK 4.2:

1) Change Implementation Model:

The Change Implementation Model consists of seven steps to help implementer’s statement the key changeover questions. The steps focus on people, leadership, trust, vision, enablement, celebration, and institutionalization. While enumerated linearly, the steps may occur concurrently. Effective communication is the pointing. There must be open, honest communication within each step of the process, and communication must connect the steps to each additional. Nothing can damage an effort toward alteration faster or more enduringly than poor communication. (a) assess and address hominid concerns (b) build trust in the guidance (c)clearly eloquent reason to all (d) create enabling situation (e) Institutionalize change within the culture (f) revel achievement (g) Validate Strong Management Throughout the Business

2) Matrix Organization:

A matrix organization can be defined as a team approach, commonly to the development of an invention or another specific mission. An organizational structure is that enables the horizontal flow of abilities and evidence. It is used mainly in the managing of enormous ventures or product development processes, illustrating personnel from different functional disciplines for assignment to a group without eliminating them from their respective positions. In a matrix, a team is created from people from different parts of the business, with different strengths and areas of proficiency. Though usually led by a project superior it is more equivalent than a traditional classified (or pyramid) structure and more self-determination are expected from individual members of the team. Roles may also be less clearly defined, with some overlap concerning areas of responsibility. A matrix may be enduring, but is often changed according to the needs of the existing project.

13 | P a g e


3) The Contextual Planning Model :

Contextual planning is suitable in environments where the external environment is changing rapidly, where the industry is undertaking gigantic vicissitudes, and where the crowd will need to scrutinize its own mission, external affiliations, organizational gatherings and processes, and it’s very established culture, when addressing issues of change and variation. Although assimilating rudiments of long-range and strategic preparation procedures, qualified planning differs in some indispensable conducts. Long-range planning originates circumstances of relatively stable or predictable enrolment demands and reserve flows, limited competition, and an invariable recognized assignment. Contextual planning is more practical, it therefore, adopts that the situation and the business are changing, but they can be prejudiced and guided by pre-emptive dealings. Externally, establishments must look at sources of opposition, combination and collaboration. Internally, it responsibility scrutinize its own mission, buildings and nation in order to find ways to acclimatize and increase in the face of peripheral deviations.

TASK 4.3:

Monitoring the progress of change in Ritz Carlton is important as it will measure the performance and the activities that are relating to it. The progress can be monitored by adopting many performance systems and metrics. It will calculate the success of the organisation in order to achieve the goal. Some of the accepted performance measurement systems to monitor the progress are as follows:

Balance Scorecard: It is a performance management approach that will focus on many performances indicators. It also includes customer’s perspectives, learning and growth financials, internal business processes in order to monitor the progress towards the organisations strategic aim and objectives.

Benchmarking: This involves looking at the external side of the organisation to research how others get their performance level and to understand the various other processes involved. The benchmarking facilitates an improved performance within the organisation and them main benchmarking is to understand and appraise the current position of a business in contrast to the best practise and to recognise the areas and means of performance improvement.

Reviews and Evaluation: By establishing these kinds of models of monthly and weekly assessments of the operations, to keep a watch on the progress being made. The evaluation will help us find out the weaknesses and the strengths of the project.

180 and 360 degree feedback: If we implement this type of model of feedback for the tem and the individual, then the management will be able to get the exact performance and efforts of every single resources involved with the project.

Setting up milestones: the milestones are of projects that are usually set to keep a track on the progress of the project.

14 | P a g e


REFERENCE:

http://www.12manage.com/methods_kotter_change_approaches.html

http://www.12manage.com/methods_7S.html

http://www.12manage.com/methods_tuckman_stages_team_development.html

http://www.associatedcontent.com/article/237685/

change_management_model s_a_look_at_pg2.html?cat=3

http://marcusball.com/opinion/CS3%20Op inion/improving%20change %20execution.htm

Organizational Change. Making Sense of Change Management. London: Kogan Page, 2004.

85-120.

J o h n s o n , G e r r y , S c h o l e s , K e v a n a n d W h i tti n g t o n , R i c h a r d . ( 2 0 0 8 )

E x p o r i n g corporate Strategy 8th Edition

Mullins L (2010) Management and Organisational Behaviour 9th Edition. Harlow

Maslow, Abraham (1970) Motivation and personality. New York : Harper and Row

15 | P a g e

scm assignment

Documents