strategic change ppt

1. Strategic Change

2. Strategic change is the movement of a
company away from its present state
towards some desired future state to
increase its competitive advantage.
To bring strategic change managers have
tried to strengthen their existing core
competencies and build new ones to
compete more effectively.

3. Types of Strategic change
 Reengineering
 Restructuring
 Innovation

4. Reengineering
It is the redesign of business processes and
the associated systems and organizational
structures to achieve a dramatic
improvement in business performance.
It is examination & change of five
components of business:
§ Strategy
§ Processes
§ Technology
§ Organization
§ Culture

5. Restructuring
Two ways of restructuring is:
 Reducing the level of differentiation &
integration by reducing departments or
hierarchy levels.
 By reducing number of employees to
bring down operating costs.
 General Motors, Hall Mark card, etc.

6. Innovation
It is the process by which organizations
use their skills & resources to create
new technologies or goods and
services so that they can change and
better respond to the needs of their
customers.
Apple Computers

7. Styles of Managing Strategic
Change
Education & Communication
Participation
Intervention
Coercion/Edict

8. Stakeholder Analysis
This is a process of identifying
individuals or groups that are likely to
be affected by a proposed action, and
sorting them according to their impact
on the action and the impact the
action will have on them.
Thus it refers to the action of analyzing
the attitude of stakeholders towards
something.

9. Stakeholder analysis provides for
identification of every stakeholder
(human, organizational, institutional,
governmental) that would be impacted
by a Change programme and how
each of the stakeholders would
impinge on same change programme.

10. Stakeholder analysis is a diagnostic
tool to-
identify key stakeholders
clarify their interests
comprehend their perception of the
problem
specify their resources
outline their mandate

11. Process of Stakeholder
Analysis
Step 1: Identify relevant stakeholders
Step 2: Ascertain relationships between
stakeholders
Step 3: Identify interests of each
stakeholders
Step 4: Identify implication of action
Step 5: Ascertain necessary action of
organization

13. Application of Stakeholder Matrix
Group A: High importance & high
influence. This represents dominant
relevance to the change project.
Group B: High importance & low
influence. This represents entities
vulnerable to marginalisation.

14. Group C: High influence & low
importance. This represents entities
that can wield power and drift
decisions to a point, yet they are of
low importance in the change project.
Group D: Low influence & low
importance.

15. Congruence Analysis
It is based on the principle that an
organization's performance is derived
from four elements: tasks, people,
structure, and culture. The higher the
congruence, or compatibility, amongst
these elements, the greater the
performance.

17. Strategic Leadership
Program Nadler, 1987
Organizational Congruence
Model
INPUT
ENVIRONMENT
(P.E.S.T.)
RESOURCES
HISTORY/
CULTURE
OUTPUT
SYSTEMS
LEVEL
UNIT/GROUP
LEVEL
INDIVIDUAL
LEVEL
INFORMAL
STRUCTURE
& PROCESS
PEOPLE
FORMAL
STRUCTURE
S
T
R
A
T
E
G
Y
WORK
TRANFORMATION PROCESS

18. Application of congruence
Model
Step One: Analyze each key element
separately
Step Two: Analyze how these elements
interrelate in your organization
Step Three: Plan to Create and Maintain
Congruence

19. PESTLE Analysis
The PESTLE Analysis is a framework
used to scan the organization’s
external macro environment.
The letters stand for Political,
Economic Socio-cultural,
Technological, Legal and
Environmental.

20. It is a part of the external analysis when
conducting a strategic analysis or
doing market research, and gives an
overview of the different macro
environmental factors that the company
has to take into consideration.
It is a useful strategic tool for
understanding market growth or decline,
business position, potential and direction
for changes in organization.