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Managing strategic change


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Managing strategic change

  1. 1. Managing Strategic Change
  2. 2. A framework for managing Strategic Change: 1. Diagnosing the change situation 2. management styles and roles. 3. Levers for managing change
  3. 3. 1. Diagnosing the type of change Types of strategic change
  4. 4. Adaptation : change which is accommodated within the current paradigm and occur incrementally. It is the most common form of change in organizations , e.g. Herbal skin care products from HUL implementing ERP in organizations Evolution : Evolution is a change in strategy which requires paradigm change, but over time, e.g., Dabur’s foray into beauty care products with the acquisition of FEM
  5. 5. Revolution : Revolution is change which requires rapid and major strategic and paradigm change, e.g. GE’s Focus from being a manufacturing to a service oriented company. Marico’s foray into skin care- kaya (service) Reconstruction :Reconstruction is the type of change which could be rapid and could involve a good deal of upheaval in the organization, but which does not fundamentally change the paradigm., e.g. Acquisition of JLR by Tata Motors.
  6. 6. Contextual features Time How quickly change is needed Scope What degree of change is needed preservation What organizational resources and characteristics need to be maintained diversity How homogenous are the staff groups and divisions within the organization capability What is the managerial and personal capability to implement change capacity What is the degree of change resource available readiness How ready for change is the workforce power What power does the change leader have to impose change
  7. 7. Organization culture as context Many aspects of the culture of the organization work to shape and guide strategy, and how it influences can result in strategic drift. The cultural web is therefore a useful way of considering the cultural context for change
  8. 8. Force field analysis : A forcefield analysis provides an initial view of change problems that need to be tackled, by identifying forces for and against change Pushing • High quality service •Ethos of hard work •Flexibility •Devolved services Resisting •Work load/ overload •Firefighting •Departmentalism •Departmental barons •Formality of management •Stories of the good old days •Blame culture •deference
  9. 9. Change management: Styles and roles Styles 1. Education 2.Collaboration/participation 3.intervention 4. Direction 5. Coercion /evict
  10. 10. Roles in managing change Change Agent :A change agent is the individual or group that effects strategic change in an organization Strategic leadership : Someone at the top sharing the purpose or vision for the future.
  11. 11. Levers for Managing Strategic Change Structure and control systems organizational routines symbolic processes power and political processes communicating change change tactics