Assignment strategic change management


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Assignment strategic change management

  1. 1. Table of contents: Task Contents1 Understand the background to 1.1 discuss models of strategic changeorganisational strategic change 1.2 evaluate the relevance of models of strategic change to organisations in the current economy 1.3 assess the value of using strategic intervention techniques in organisations2 Understand issues relating to 2.1 examine the need for strategic change instrategic change in an an organisationorganisation 2.2 assess the factors that are driving the need for strategic change in an organisation 2.3 assess the resource implications of the organisation not responding to strategic change3 Be able to lead stakeholders in 3.1 develop systems to involve stakeholdersdeveloping a strategy for change in the planning of change 3.2 develop a change management strategy with stakeholders 3.3 evaluate the systems used to involve stakeholders in the planning of change 3.4 create a strategy for managing resistance to change4 Be able to plan to implement 4.1 develop appropriate models for changemodels for ensuring ongoingchange 4.2 plan to implement a model for change 4.3 develop appropriate measures to monitor progress
  2. 2. IntroductionStrategic marketing deals with the big picture marketing planning. It analyzes how acompany can best satisfy its customers and make a profit at it. Strategic marketing planning isdirected from the top of the company and is extremely important in any for-profitorganization. Several key principles govern strategic marketing.Understand the Marketplace and Consumer A company must identify the sources of demand for its products and closely analyze thecompetitive landscape in which it wants the consumer to prefer its products over those ofcompetitors.The company must divide potential customers into segments and find ways to best satisfythem. Each segment may require a distinct marketing mix.Deliver ValueWhile satisfying individual consumer segments and gaining market share is important, thecompany must add value to be successful in the long term. Strategic marketing planning mustbe build on a strong foundation---a company has to deliver a tangible benefit to theconsumers of its products.Task 1.1: Discuss models of strategic changeA strategic planning model is more about a different approach to the project. Its aboutstepping back from the execution-mode in order to examine and evaluate it from a differentangle.In the traditional project cycle the monitoring and evaluation was done towards the end of theproject. This model changes that by considering on-going monitoring and frequent evaluationas vital parts of the implementation stage for a successful project. Its important to recognizewhat is working and what needs to be changed on time. As a manager you need to becomestrategic and view your project from different lenses. If you focus only the execution part andthe day-to-day tasks, how do you know that the selected project tools are workingeffectively? How do you measure the quality of what you are doing? What are yourindicators?In order to create a strategic management model that will support the current implementationand the long-term impact of the project start with the following questions:- What is the purpose of the project?- How do all the activities we are implementing relate to its purpose?- Are we sticking to the project plan?
  3. 3. - What have evolved or changed from when we started? Why?- How it would it look like in 3 years? What would be the impact?- How do we measure impact? What qualitative and quantitative indicators exist to back-upour success?- Who benefits from our project? Are they winners and are they losers? Why?  In the WCO Compendium the perspectives being handled are limited to two recognizable and widespread models: • The Planned Change Management model • The Organic Change Management modelBoth models are introduced, although the Organic Change Management model is handled inmore detail. By taking the Organic Change Management model as the foundation, it will bepossible to illustrate the steps needed to start up a change process in order to implement thestrategic action plans.1.2 Evaluate the relevance of models of strategic change toorganisations in the current economyThe study of strategic change has long occupied an important position in the larger field ofstrategic management. Strategic change has been recognized as an important phenomenonbecause it represents the means through which organizations maintain coalignment withshifting competitive, technological, and social environments which occasionally pose threatsto their continued survival and effectiveness. The study of strategic change has long occupiedan important position in the larger field of strategic management. Strategic change has beenrecognized as an important phenomenon because it represents the means through whichorganizations maintain co alignment with shifting competitive, technological, and socialenvironments which occasionally pose threats to their continued survival and effectiveness.Thus following all the models of strategic change, we can help our organization to reach tonewer heights. For this we need to know what basically the purpose of our project is and howit could be done. All the models of strategic change do help in improving the currenteconomic conditions.1.3 Assess the value of using strategic intervention techniques inorganizations:Strategic planning implies planning for the long-term. In many organizations, the time frameassociated with this type of planning is from three to five years into the future. Due to thistimeframe, there are several challenges associated with long-range planning. These include:creating a plan that is breakthrough in its orientation rather than ―more of the same,‖ gettingall stakeholders to commit to the organization‘s strategies and to follow through onimplementation of critical activities, and decreasing cycle time in the planning process. Intoday‘s world, organizations cannot afford these challenges. To survive, they must be able toquickly create, deploy, and implement breakthrough strategies that help them to continually
  4. 4. anticipate and meet current and future customer requirements. In doing so, they must be ableto align all internal and external resources around the plan. This sort of orientationnecessitates approaches to strategic planning that involve all employees and stakeholders inthe planning process and a planning process that can occur within a shortened time frame.Large group intervention techniques have emerged that more quickly effect large-scalechange. As such, they have been effective tools in dealing with some of the issues associatedwith strategic planning. These intervention techniques include: Future Search Conferences,Real Time Strategic Change, ICA (Institute of Cultural Affairs) Strategic process, TheConference Model, Fast Cycle Full Participation Work Design, Real Time Work Design,Participative Design, Simu-Real, Work-outs, and Open Space Technology.These approaches allow organizations to involve anywhere from 30 to hundreds, if not a fewthousand, individuals in working together to accomplish a common outcome. They may cometogether for a single day or multiple days or events. In the process of working collaboratively,the organization can more quickly achieve what Kathleen Dannemiller has coined ―one heartand one mind‖—a key factor in organizational alignment.
  5. 5. TASK 2: Understand issues relating to strategic change in an organizationStrategic Change means changing the organizational Vision, Mission, Objectives andofcourse the adopted strategy to achieve those objectives.―Strategic change is defined as " changes in the content of a firms strategy as defined by itsscope, resource deployments, competitive advantages, and synergy" or―Strategic change is defined as a difference in the form, quality, or state over time inorganizations alignment with its external environment.‖Considering the definition of strategic change, strategic change could be affected by the statesof firms and their external environments. Because the performance of firms might dependenton the fit between firms and their external environments, the appearances of novelopportunities and threats in the external environments. In other words, the change of externalenvironments, require firms to adapt to the external environments again; as a result, firmswould change their strategy in response to the environmental changes. The states of firmswill also affect the occurrence of strategic change. For example, firms tend to adopt newstrategies in the face of financial distress for the purpose of breaking the critical situations.Additionally, organizations would possess structural inertia that they tend to keep theirprevious structure and strategy.2.1 Examine the need for strategic change in an organizationThe reason for this failure is the inability of the organization to deal with Change. Wheninstalling a new application or implementing a new customer service initiative, mostorganizations view the installation or implementation as the end-point in the initiative. Whenthings start to go awry after implementation, individuals within the organization start tobelieve that the decision to proceed with an initiative was wrong and start trying to return totheir old ways. Although this can be true, more often than not they don‘t realize that byimplementing they are now forced to BEGIN a process of Change. “Change Is AboutPeople; and People Hate Change”What most organizations forget is that the benefits of a new system, a new org structure andnew approach to the business are not realized until people change their behavior. A change inbehavior cannot be realized until AFTER the initiative has been implemented. In other words,Change begins with an Ending. Paradoxical as this might seem, every change involves givingup something and taking a leap of faith into the unknown.
  6. 6. The time between the change and the realization of the results of that change is what WilliamBridges calls the ―neutral-zone‖1 and what I call the realization gap. This is the time betweenthe implementation and the realization of the benefits of the change. Most initiatives aregiven up because organizations don‘t see the gap for what it is; the transition between the oldworld and the new.2.2 Assess the factors that are driving the need for strategic change in anorganization:Organizational change management includes processes and tools for managing the peopleside of the change at an organizational level. These tools include a structured approach thatcan be used to effectively transition groups or organizations through change. When combinedwith an understanding of individual change management, these tools provide a framework formanaging the people side of change. People who are confronted by change will experience aform of culture-shock as established patterns of corporate life are altered, or viewed bypeople as being threatened. Employees will typically experience a form of "grief" or loss.Following are some of the factors that are driving the need for strategic change in anorganization:  Financial losses and profit reductions  Increased competition) almost 50%  Technological development  New chief executive  Industry in recessionOther factors are:  External o Changes in competitive forces o Regulation/deregulation o Changes in customer expectation o Changes in standards o Technology changes  Internal o Performance dips o Changes in the management team (particularly the chief executive)Grundy (1993) further suggests that when a number of factors converge major change cancrystallize. For example, internal performance may be flagging; external competitivepressures may be increasing; and at the same time a new CEO wants to put his/her stamp onthe organization. Where these influences coincide ―a wave of change‖ can be produced whichmanagers find difficult to cope with.
  7. 7. 2.3 Assess the resource implications of the organisation notresponding to strategic changeHuman-based competences and human resource management which aresome keys for thelong term organizational competitive advantage, doesn‘t respond much to strategic change.Because HR department of an organization is the main part and its processing need not to bechanged frequently, although the employees may change.A strategic human resource management system (HRMS) must allow the adaptation ofhuman resource management practices and the knowledge and behavior of the employees asregards the immediate needs of the organization, which are shown in its organizationalstrategy. On the other hand, a human resource management system must promote thedevelopment of a dynamic organizational capability that generates agile responses to theneeds of current organizational strategy. In brief, the SHRMS must facilitate strategicflexibility with the goal of reaching a dynamic fit and adequately answering the requests ofthe strategy and the environment. Human resource management must explore how theintegration and complementarities of resources, practices and organizational capacitiesfacilitate the achievement of the competitive advantage for the organization. Then we mustanalyze how human resource architecture can shape human resource systems and practicestowards the development of organizational competitive capacity. Here the concepts ofinternal fit and external fit are really useful.
  8. 8. Task 3: Be able to lead stakeholders in developing a strategy for changeStakeholders are those who have rights or interests in a system. If you are concerned with thefuture of a system – the stakeholders are those you should worry about. For an organisation,for example, stakeholders are any group or individual who can affect, or is affected by theachievement of the organisation‘s purpose. This definition is too broad for some as it includesinterested parties as well as affected parties. Some prefer to restrict the term to those whohave a ‗stake‘, claim or vested interest – those who provide something of importance to theorganisation, and expect something in return.Stakeholders can be individuals, communities, social groups, or organisations. For example,stakeholders in a forest policy might include people who live in or near the relevant forests,people who live further away who use these forests, settlers from elsewhere in the country, orabroad, workers, small scale entrepreneurs, forest officials, timber company managers,environmentalists, politicians, public servants, national citizens, consumers, forest authorities,central government agencies, local government agencies, national NGOs, academics andresearchers, donors, consultants, international NGOs, community based organisations andgeneral. All these people, if their interests in forests are indeed legitimate - and one role ofstakeholder power analysis might be to examine the legitimacy of their claims - should insome way be involved in the making and implementing of policy which affects forests.3.1 Develop systems to involve stakeholders in the planning of changeInvestigate stakeholder‘s interests, characteristics and circumstances:Once stakeholders have been identified, their interests, characteristics and circumstances needto be better understood. At this stage it is particularly important that stakeholders expresstheir own concerns. A checklist of questions for each stakeholder group might include:  What are the stakeholders experiences or expectations of the policy/ institution?  What benefits and costs have their been, or are there likely to be, for the stakeholder?  What stakeholder interests conflict with the goals of the policy/ institution?  What resources has the stakeholder mobilized, or is willing to mobilize?3.2 Develop a change management strategy with stakeholdersFor this useful methodologies are there which must be followed for bringing a strategicchange.  Brainstorming to generate ideas and issues within a stakeholder group. This takes the form of a session in which ‗anything goes‘ - with all points recorded. Later these points can be sorted and prioritised. Focus groups can then be convened with particular stakeholders to discuss particular topics.  Semi-structured interviews in which an informal checklist of issues is used to guide an interview with a stakeholder group, whilst allowing other issues to arise and be pursued. This approach is particularly useful for cross-checking, identification of common ground, identification of tradeoffs and identification of decision-making frameworks of stakeholders.  Digging up existing data – a variety of recorded materials may shed light on stakeholder‘s interests, characteristics and circumstances. It is always worth probing
  9. 9. and rummaging for reports and recorded information, there is almost always more of it than at first appears, sometimes found in the most unlikely places.  Time lines can be prepared with stakeholders of the history of links and impacts of particular policies, institutions and processes, with discussion of cause and effect of various changes.  Diagrams help many people to get a quick idea of what is planned or talked about. They can work well to stimulate discussion by both non-literate and literate people. In general diagrams and visualisations work because they provide a focus for attention while discussing an issue, represent complex issues simply, stimulate ideas and therefore assist in decision-making. Of course, some people do not think or work well in terms of diagrams and prefer verbal discussion with descriptions of real examples and stories.3.3 Evaluate the systems used to involve stakeholders in the planning ofchangeIdentification and confirmation of the level of effort to be assigned to each stakeholder groupand the preferred form of engagement and associated frequency need to be established by theprogram manager. Early engagement with stakeholders helps set the stage for a constructiveprocess throughout the entire program execution process. Stakeholder engagement can beginin the earliest stages of issue identification at the program level and then be built upon as theprogram is developed and ultimately implemented through a series of projects. Proactiveengagement allows surprises, issues and problems to be addressed within a framework inwhich a high level of trust exists. Contrast this with the reactive situation where firstengagement takes place around a problem or crisis. Programs should scale their stakeholderengagement strategies relative to the risks and impacts the program and its various projectsare likely to create. There is no one-size-fits-all approach when it comes to engagement. Likeany program function, stakeholder engagement needs to be managed and driven by a well-defined strategy. Clear objectives must exist together with a timetable, budget, and allocationof responsibilities.Good stakeholder engagement programs are characterized by:  Timely and Comprehensive Information Disclosure factual information earliest possible disclosure o understand timing related risks readily accessible respect for sensitive information structured to facilitate engagement  Early and Ongoing Stakeholder Consultation founded on well developed and communicated plan consultation well defined o purpose o any pre-conditions for consultation o affected stakeholders issues prioritized carefully selected engagement methodologies
  10. 10.  clearly identified responsible individuals both within the program and project levels  document consultation process, feedback and actions and feedback to stakeholders3.4 Create a strategy for managing resistance to changeManaging Resistance to Change is a methodology that is designed to help people inorganizations face resistance and cross the street -- to actually manage the transitionsexperienced within organizational change.Ways to reduce resistance to change: 1. Involve interested parties in the planning of change by asking them for suggestions and incorporating their ideas. 2. Clearly define the need for the change by communicating the strategic decision personally and in written form. 3. Address the "people needs" of those involved. Disrupt only what needs to be changed. Help people retain friendships, comfortable settings and group norms wherever possible. 4. Design flexibility into change by phasing it in wherever possible. This will allow people to complete current efforts and assimilate new behaviours along the way. Allow employees to redefine their roles during the course of implementing change. 5. Be open and honest. 6. Do not leave openings for people to return to the status quo. If you and your organization are not ready to commit yourselves to the change, dont announce the strategy. 7. Focus continually on the positive aspects of the change. Be specific where you can. 8. Deliver training programs that develop basic skills as opposed to processes such as: conducting meetings, communication, teambuilding, self-esteem, and coaching.
  11. 11. Task 4: Be able to plan to implement models for ensuring ongoing change4.1 Develop appropriate models for change  Create Urgency: For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving. This isnt simply a matter of showing people poor sales statistics or talking about increased competition. Open an honest and convincing dialogue about whats happening in the marketplace and with your competition. If many people start talking about the change you propose, the urgency can build and feed on itself. What you can do: Identify potential threats, and develop scenarios showing what could happen in the future. Examine opportunities that should be, or could be, exploited. Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking. Request support from customers, outside stakeholders and industry people to strengthen your argument.  Form a Powerful Coalition: Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isnt enough – you have to lead it. You can find effective change leaders throughout your organization – they dont necessarily follow the traditional company hierarchy. To lead change, you need to bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance. Once formed, your "change coalition" needs to work as a team, continuing to build urgency and momentum around the need for change.4.2 Plan to implement a model for changeWhen you first start thinking about change, there will probably be many great ideas andsolutions floating around. Link these concepts to an overall vision that people can graspeasily and remember.A clear vision can help everyone understand why youre asking them to do something. Whenpeople see for themselves what youre trying to achieve, then the directives theyre given tendto make more sense. Determine the values that are central to the change. Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization. Create a strategy to execute that vision. Ensure that your change coalition can describe the vision in five minutes or less.
  12. 12. Practice your "vision speech" often.4.3 Develop appropriate measures to monitor progressA frequent assessment of progress is necessary in order to ensure that plan objectives areachieved in a timely manner. Course corrections may be required as new informationbecomes available or new opportunities or threats develop.The process of determining local performance measures and performance outcomes shouldbe transparent and readily available to the public. The performance results for eachparticipating program should also be open for review, as businesses, workers, and jobseekersall need to know what services work. Further, taxpayers should be informed of the extent towhich the expenditure of public funds yields outcomes beneficial to the community.Providers and other partners that do not meet performance standards or advance the systemsgoals and objectives should receive technical assistance to improve their service delivery. Ifthese organizations or individuals do not achieve better results, they should be sanctioned andultimately dropped from the public workforce system. Funds should be tied to performancemeasurements which account for the particular challenges of working in differentcommunities. Indeed, WIA permits job candidates to use training vouchers to select industry-recognized training or education programs that have been designated eligible trainingproviders by local WIBs and the state because they have proven results.
  13. 13. References 1. Matsuno, K., & Mentzer, J. T. (2000), ―The effects of strategy type on the market orientation– performance relationship‖, Journal of Marketing, Vol.64, pp.1 –16. 2. Gonzalez- Benito Oscar & Gonzalez- Benito Javier (2005), ―Cultural vs. operational market orientation and objective vs. subjective performance: perspective of production and operation‖, Journal of Industrial Marketing Management, Vol. 34, No. 8, pp.797-829. 3.,39024195,39158410,00.htm 4. 5. 6. Andersen, E.S., Grude, K.V., and Hang, T. 1995. Goal Directed Project Management: Effective techniques and strategies (trans. From Norwegian by Roberta Wiig), 2nd edn. London: Kogan Page. 7. Appelo, J. 2009. What is the Mission of Your Project? Retrieved May 12, 2009, from 8. Heneman, R., Waldeck, N. & Cushnie, M. (1996). Diversity considerations in staffing decisionmaking. In E. Kossek & S. Lobel (eds) Managing Diversity: Human Resource Strategies for Transforming the Workplace. Oxford: Blackwell. 9. Johnson, L. & Johnstone, S. (2000). The legislative framework. In G. Kirton & A. Greene (eds) The Dynamics of Managing Diversity. Oxford: Butterworth Heinemann. 10. Azzopardi, S. 2009. The Evolution of Project Management. Retrieved May 26, 2009, from 11. Mathis, M. 2009. Work Breakdown Structure: Purpose, Process and Pitfalls. Retrieved June 18, 2009 from 12. Rees, T. (1998). Mainstreaming Equality in the European Union. London: Routledge. Richards, W. (2000). Evaluating equal opportunities initiatives: the case for a ‗transformative‘ agenda. In M. Noon&E. Ogbonna (eds) Equality, Diversity and Disadvantage in Employment. Basingstoke: Palgrave.