2. Background
Competitive forces in the business environment
regularly require an enterprise to adapt
To enable competitiveness and the maintenance of
industrial/market relevance
Forces include:
I. Globalization
II. technological change
III. Deregulation
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3. Factors influencing change
Changes in political powers
catastrophes, such as earthquakes
civil wars
Industrial and market changes
Needs for increased business competitiveness
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4. Factors influencing change
Organizations consider the change setting’s
characteristics in undertaking change
Essential to apply effective change management
strategies during change
Change management: strategies put in place to ensure
that the organization adapts to alterations taking place
in the internal and external environment
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5. Kotters’ Eight Steps in Change
1. Creation of Urgency: set the pace for adoption of
change in an organization; management dialogues
on the issue to influence general acceptance among
staff
2. Formation of a Powerful Guiding Coalition:
change should have support from the visible group in
the organization.
3. Creating a Vision: change is pegged on a plan, which
should be clearly communicated to all stakeholders
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6. Kotters’ Eight Steps in Change
4. Communicating the Vision: communicating the vision
enables everyone to grasp and embrace it.
5. Removing Obstacles: educating and involving staff to
counter any possibilities of resistance
6. Creating Short-term targets: firm creates short-term
goals to guide and motivate staff in the process of change
7. Building on the Change: laying out structures and
mechanisms to maintain and foster the new processes and
methods
8. Anchoring the Changes to the Corporate Structure:
making the change part of organizational corporate
culture.
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