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How to manage the change using the theories of Kottet

How to manage the change using the theories of Kottet

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  • Effectively this is managing the change. Smaller companies can do this easily, larger companies have more difficulty. We spoke last week of recognising the driving forces and cultures that exist and have evolved within an organisation and the need to align these. If our strategic Intent changes then so must our form (culture) Forces and forms will exist not only at organisational level but also at functional level. Therefore this involves not only senior management but also line management
  • Page 153 Business Strategy: David Campbell et al
  • Page 166: Business Strategy: David Campbell. We are drilling down here to the impact of our plans on the organisation – these are areas we need to consider. We are not talking overnight, the very word strategic indicates a long term project which needs to be carefully planned including specific planning involving an every increasing amount of people from all areas and levels. At this point it becomes a very complex process In order to implement a strategy the organisation will need to work out how the resource it. This will mean how it will obtain the additional finance need to support the change, HRM in the form of additional skills' and any plant, equipment and buildings needed. It may also need to re-configure the structure and culture to fit the new strategic approach Physical resource planning is, by nature, a little more complex that the other 3. The reason for this is the number of inputs which fall into the category. These include land, building, location, plant equipment & raw stock. Some may be easier to obtain than others. Think of retailing were the selection of the right location could be paramount to the success. Finance: Whilst some can be provided from profits we need to consider other methods of raising funds. External funds could include share issues corporate bonds ect
  • Page 39 Strategic Management & Business Analysis We will discuss these as we go through (Go Through hand out) Creating a ‘panic’ amongst stakeholders, 1 CEO deliberately engineered a large financial loss creating pressure to change. Another commissioned a customer service survey knowing the results would be bad thus stimulation action. Do ‘central Direction of The Labour party’ case study Establish a sense of urgency – ‘we cannot carry on in this way – we need to change’ 2. Form a powerful guiding coalition – needs to be a senior management lead steering group to galvanise the need for change Create a vision – this is where we need to be, this is utopia 4. Communicate the vision – this is where we need to be. Cite David Betts
  • Page 39: Strategic Management & Business Analysis Mention Kurt Lewin Unfreeze -change – refreeze model Discuss Collaboration in the Travel Industry case study
  • Page 40: Strategic Management & Business Analysis This is the job of the change drivers or change agents through effective communications. (refer to page 39 Kotter quote) The CEO of a retailing firm facing a crisis addressed the board ‘ I suggest we think of ourselves like bulls facing a choice: The bullring or the abattoir. I have made up my mind, how about you’? Go though Kotter Hand Out A SWOT would be a useful tool to highlight the urgency
  • Page 40: Strategic Management & Business Analysis Refer to my experiences as a change agent during Cincinnati’s change to lean manufacturing techniques. The project team must have the power to effect change and include representatives of those who are to implement change – stakeholders Do Ambridge Electrics case study Strong, visible leadership is needed, this is where the change leader will start to do their work. A project team of like minded people geared to steer the change through motivation and dynomism.
  • Page 41: Strategic Management & Business Analysis Having established the need for change it is important to express that need in a form that can be understood by all. A clear statement, either through staff bulletin (as happened at this college), or through a change in the mission statement. You will need to formulate a vision statement of where you see the companies future and sell that vision. Change leaders should talk about the vision at every opportunity so that it gets embedded into the mindset of everyone
  • Page 41: Strategic Management & Business Analysis Transformation is impossible unless employees are convinced the change is both necessary and achievable. Everyone needs to believe. They will have to make changes and sacrifices and tolerate job losses and take on extra work as a result. Senior management must be seen to be making sacrifices and be committed to the change also otherwise credibility in the mission becomes irrelevant. Students: How can they do this? Answer: By becoming wholeheartedly involved in the change through leadership of the change, by effectively communicating themselves to the whole of the workforce rather than cascading. (Refer to David Betts at Cincinnati Milacron)
  • Page 41: Strategic Management & Business Analysis Mention the initial impact of 6 sigma at Jaguar Here you are removing the obstacles to change whether is be people or process. This may mean re-organising the structure ans identifying pockets of resistance. Recognize and celebrate successful change
  • Page 41: Strategic Management & Business Analysis Nothing motivates more than success. You need to silence critics Progress must be measured otherwise how do we know how far we have come? In 1978 Quinn suggested senior management steer the direction and lower level managers be given the room and direction to develop methods by which the direction is followed. The emergence of the balanced scorecard provides a framework for translating a set of objectives into a set of performance indicators Go through hand out
  • Page 42/43 Strategic Analysis & Business analysis + Handout The balanced scorecard provides a framework for translating a companies strategic objectives into a set of performance measures. It was designed by Kaplan & Norton in 1992 & revolved around 4 separate management processes as seen above. Read figure 4.6 The Balanced Scorecard is a performance management approach that focuses on various overall performance indicators, often including customer perspective, internal-business processes, learning and growth and financials, to monitor progress toward organization's strategic goals. Each major unit throughout the organization often establishes its own scorecard which, in turn, is integrated with the scorecards of other units to achieve the scorecard of the overall organization.
  • Page 44: Strategic Management & Business Analysis It is important that improved performance figures are used to inspire further improvements . If individuals resisting change can see early signs of improvement then their resistance will be eroded. (refer to Cincinnati experience where section leaders complained that they had not had there section improved)
  • Page 44: Strategic Management & Business Analysis It is vital that changes in systems and practices and attitudes are accompanied by a culture that the change that reflects. People need to accept that change is vital to the success of the organisation and they need adapt quickly. It is dangerous to consider the change complete, attitudes to CI must become embedded in the norms of the organisation. (Cat and their corporate vision of best people, best practice, best process ect)


  • 1. Strategy Implementation The Realisation of Strategic Aims to Reality
  • 2. Strategy Implementation
    • Once the appropriate strategic options have been selected the organisation needs to consider the issues surrounding the implementation. These are…
  • 3. Strategy Implementation
    • Organisational Resource Base
    • Structure & Culture
    • Internal Change Management
    • Impact on Internal & External Stakeholders
  • 4. Strategy Implementation
    • Kotter (1995) suggest that organisation transformation should be modelled using an 8-step framework:
    • Establish a sense of urgency
    • Form a powerful guiding coalition
    • Create a vision
    • Communicate the vision…
  • 5. Strategy Implementation
    • 5. Empower others to act on the vision.
    • 6. Plan for & create short-term wins.
    • 7. Consolidate improvement to produce still more change.
    • 8. Embed the new approaches within the culture.
  • 6. Strategy Implementation
    • Establish a sense of urgency (Unfreeze)
    • Find ways of establishing the need for change. (before it is too late!)
    • Weaken resistance to change.
    • Strengthen the forces which drive change
  • 7. Strategy Implementation
    • Form a powerful guiding coalition
    • The formulation of a project team which must credibility and the backing of corporate management.
  • 8. Strategy Implementation
    • Create a vision (The change process starts)
    • A clear statement of what is needed and where the organisation is going is essential.
    • Measurable performance indicators (KPI’s) are needed.
  • 9. Strategy Implementation
    • Communicate the vision
    • Senior management must ensure that their own behaviour backs the rhetoric or lower level employees will not back the changes
  • 10. Strategy Implementation
    • Empower others to act on the vision.
    • Communicate the impact of the change using before and after models.
    • Sell the ‘wins’
  • 11. Strategy Implementation
    • Plan for & create short-term wins
    • ‘ Winning’ must become a habit, short term wins become the foundation of long term success.
    • ‘ Wins’ should be celebrated.
  • 12. Strategy Implementation
    • Balanced Scorecard
  • 13. Strategy Implementation
    • Consolidate improvement to produce still more change.
    • There is a need to have a continuous approach to improving practices that resist the corporate vision.
  • 14. Strategy Implementation
    • Embed the new approaches within the culture. (Re-freeze)
    • It is important for the future of the organisation that a culture be adopted that can adapt to change quickly.