Week 10


Published on


Published in: Sports, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • For this slide see Dabscheck, B (1991). The Professional Cricketers Association of Australia. Sporting Traditions 8 (1) 2-27. Average weekly earnings adult males (AU$) 1970 – 80.00 1977 – 202.50
  • See Grieg v Insole
  • The issue here is a new product that could smash open the traditionally organising structures that have governed cricket
  • Week 10

    1. 1. Strategic Change LTP004N Strategic Management in Sport Week 10 Spring Semester 2010
    2. 2. Managing Strategic Change - Outline <ul><li>Differences in scope of strategic change </li></ul><ul><li>Effect of organisational context/field on design of strategic change programmes </li></ul><ul><li>Forcefield analysis </li></ul><ul><li>Leadership styles </li></ul><ul><li>Role of change agents and styles of managing change </li></ul><ul><li>Levers for influencing strategic change </li></ul><ul><li>Unintended consequences of change programmes </li></ul>
    3. 3. Managing Strategic Change <ul><li>Tendency towards organisational inertia and resistance to change </li></ul><ul><li>Top and middle managers (and below) are responsible for strategic change </li></ul><ul><li>Need to link the strategic and the operational aspects of the organisation </li></ul><ul><li>Managing change is context dependent </li></ul>
    4. 4. Key Elements in Managing Strategic Change Exhibit 10.1
    5. 5. Diagnosing the Change Situation <ul><li>Why is strategic change needed? </li></ul><ul><li>Change in environment, field, competition, stakeholders etc. </li></ul><ul><li>Basis of strategy </li></ul><ul><ul><li>Strategic purpose/strategic intent </li></ul></ul><ul><ul><li>Bases of competitive advantage </li></ul></ul><ul><li>Specific possible directions and methods of strategy development </li></ul><ul><li>Changes in structures, processes, relationships, resources and activities required </li></ul><ul><ul><li>To translate strategic thinking into action </li></ul></ul>
    6. 6. Catalysts and Opportunities <ul><li>A catalyst is a change in the business environment calling for reassessing a company's goals, strategies and the options for reaching those goals </li></ul><ul><ul><li>Changes in technology, changes in regulation, external accidents are all catalysts </li></ul></ul><ul><ul><li>New management with new ideas on strategy can act as catalysts </li></ul></ul><ul><li>Opportunities are organisation specific and are expressed as a potentially favorable solution to a problem, or negation of potential threats </li></ul><ul><li>New opportunities involve change </li></ul><ul><ul><li>incremental </li></ul></ul><ul><ul><li>evolutionary </li></ul></ul><ul><ul><li>reconstructive </li></ul></ul><ul><ul><li>revolutionary </li></ul></ul>
    7. 7. Dynamics of Change <ul><li>External </li></ul><ul><li>Environment </li></ul><ul><li>General </li></ul><ul><li>Field </li></ul><ul><li>Internal Context </li></ul><ul><li>Culture </li></ul><ul><li>Structure </li></ul><ul><li>Internal Operations </li></ul><ul><li>Resources incl people </li></ul><ul><li>Stakeholders </li></ul><ul><li>Governance </li></ul>Strategic Outcome Strategy Development (Response) PESTEL Resources 5 Forces Culture/Archetypes Fields Lenses
    8. 8. Types of Change Source: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change , Prentice Hall, 1999.
    9. 9. Paradigms and Strategy Formulation Strengths & Weaknesses Capabilities Opportunities & Threats Environmental Forces Strategy Performance The Paradigm
    10. 10. Types of Change – Sport Examples Incremental Big Bang Nature of Change In Time Scope of Change in Org Paradigm Realignment Transformation Adaptation Reconstruction UK Rugby League in Summer Twenty/20 cricket Premier League Soccer LTA Foster Report on UK Athletics World Series Cricket Olympics post LA Evolution Revolution
    11. 12. The Governance of Cricket pre-1977 <ul><li>International Cricket Conference </li></ul><ul><ul><li>Key members: England, Australia, New Zealand, India, West Indies </li></ul></ul><ul><li>England – Test Match and Country Cricket Board (TCCB), Australia – Australian Cricket Board (A.C.B.) </li></ul><ul><ul><li>Both systems delegate structures </li></ul></ul><ul><li>Values: amateurism, gentlemanliness, civility </li></ul><ul><li>Each board main organiser of National cricket sides and tours overseas and custodian of game in respective nations </li></ul><ul><li>The main form of cricket was 5 day test matches and management viewed the game through an experience lens </li></ul>Players ‘are not professionals… they were invited to play and if they don’t like the conditions there are 500,000 other cricketers in Australia who would love to take their place’ - Alan Barnes (A.C.B. Secretary (CEO) 1975)
    12. 13. The Context: Cricket players, payments and commercial returns <ul><li>Great disparity in cricketer’s earnings as payments were not contractually organised </li></ul><ul><ul><li>Individuals to play were selected by the Boards </li></ul></ul><ul><li>Aus Tour Payments </li></ul><ul><ul><li>1969/70 – 123/wk (23 weeks) </li></ul></ul><ul><ul><li>1977 – 573/wk (19 weeks) </li></ul></ul><ul><li>Aus Domestic Payments </li></ul><ul><ul><li>1970/71 – 180 per test </li></ul></ul><ul><ul><li>1977/78 – 2012 per test (including sponsor bonus of 1212) </li></ul></ul><ul><li>Players share of gate receipts % </li></ul><ul><ul><li>1970/71 - 2.95 </li></ul></ul><ul><ul><li>1977 - 5.75 </li></ul></ul>All payments are in AU$
    13. 14. Kerry Packer “ Cricket is going to get revolutionised whether [the establishment] like it or not. There is nothing they can do to stop me. Not a goddamn thing”
    14. 16. World Series Cricket <ul><li>Kerry Packer wanted the rights to the broadcast of cricket in Australia for Channel 9, he approached ACB with substantial offer and was rejected </li></ul><ul><li>After rejection Packer approached the world’s best 50 players (resources) to form a break-away series (An ideas lens) </li></ul><ul><li>The players who had felt for years that they were exploited by their boards signed to his series (especially the West Indies) </li></ul><ul><li>The Governing Bodies fought this in court and lost </li></ul><ul><ul><li>The players decision was supported in the High Court who focused on the players ‘right to earn a living’ over the rights of the Boards to provide a reasonable contest </li></ul></ul><ul><ul><li>on the assumption that not having the best players would ruin their cricket </li></ul></ul><ul><li>Packer created the World Series Cricket tournament; played in a variety of formats (test and limited over matches) </li></ul>
    15. 18. WSC 1977-1978 <ul><li>First series played to very small crowds at non-traditional test venues </li></ul><ul><ul><li>Board’s still controlled supply of traditional test grounds and ran concurrent competition with second string side </li></ul></ul><ul><li>Innovative broadcast and match formats gradually gained interest </li></ul><ul><ul><li>Initial attendances were very low (see previous) </li></ul></ul><ul><li>The Australian governing body continued as normal with a make-shift team (strike breakers) and decent crowds </li></ul><ul><ul><li>However commercial sources were unhappy with additional competition </li></ul></ul>
    16. 19. WSC 1978-1979 <ul><li>WSC ended with creation of Benson & Hedges World Cup series (a triangular one day series) in 1979/80 and the awarding of TV rights to Channel 9 </li></ul><ul><li>Players returned to their boards without penalties and were signed onto contracts </li></ul><ul><li>The contract element changed the relationship between the governing body and the players </li></ul><ul><li>The sport gradually became more professional in the management of commercial organisations, players and the authorities </li></ul>
    17. 22. Stanford, ICL or IPL, is it happening again? International Twenty-20 Series <ul><li>Stanford Twenty-20 </li></ul><ul><ul><li>Collapse and Fraud? </li></ul></ul><ul><li>Indian Cricket League </li></ul><ul><ul><li>Rebel league </li></ul></ul><ul><li>Indian Premier League </li></ul><ul><ul><li>Approved by BCCI </li></ul></ul>
    18. 23. Roger Draper at the LTA <ul><li>UK tennis received millions of lottery money but ended up with Britain no male junior ranked inside the world top 100 by 2006 </li></ul><ul><li>‘ Sport is big business – business is about change’ </li></ul><ul><li>Immediately sacked three key figures in the organisation </li></ul><ul><ul><li>“ When you are running a business there are some things you can take your time over, but there are others over which you must take urgent and important decisions” </li></ul></ul><ul><li>Mandate: to harmonise the factions of the British game </li></ul><ul><li>Vision – 5-7 year time frame ‘to fill Trafalgar Square’ with a Wimbledon champion with the LTA acknowledged as best sporting organisation globally </li></ul><ul><li>Alignment of resources and stakeholders </li></ul><ul><ul><li>3 key elements: coaches, talent and facilities and supporting experts </li></ul></ul><ul><li>Draper at Sport England was a critic of the National Training Centre at Roehampton, a £40m investment </li></ul><ul><ul><li>“ What was the point of building a brilliant new university if you were going to cut back on your teachers and your primary schools and your secondary school and then wonder why no A-grade students were coming through?” </li></ul></ul><ul><li>Draper is seen by experts to be fighting the sport’s natural conservatism and petty bickering </li></ul>
    19. 24. Styles of Leadership – Main Schools
    20. 25. Situational Based Leadership Organisational development means situations change, means leadership focus must also change
    21. 26. Linking Leadership Style with Culture Flexibility Control Internal External FOCUS Management Style Mentor Role Facilitator Role Innovator Role Broker Role Producer Role Director Role Open System Rational Goal Internal Process Model Human Relations Model Quinn, Rohrbaugh Monitor Role Coordinator Role
    22. 27. Charismatic & Transformational Leadership <ul><li>Charismatic leadership </li></ul><ul><li>Impression management (behaviours designed to display leader competence); </li></ul><ul><li>Articulation of ideological goals; </li></ul><ul><li>Defining subordinate roles in terms of ideological values; </li></ul><ul><li>Engaging in role modelling behavior; </li></ul><ul><li>Communicating high expectations and confidence in subordinates; and </li></ul><ul><li>Engaging in behaviour designed to arouse appropriate follower motives(e.G., Need for achievement) </li></ul><ul><li>Transformational Leadership </li></ul><ul><li>Transmitting a sense of mission; </li></ul><ul><li>Delegation of authority, coaching and teaching; and </li></ul><ul><li>Emphasizing problem solving and use of reasoning </li></ul><ul><li>Challenge to status quo </li></ul>
    23. 28. Problems: Difficulties & ‘Messes’ <ul><li>Difficulties. </li></ul><ul><li>These are characterised by ‘ hard complexity’ </li></ul><ul><li>Short timescale </li></ul><ul><li>There are lots of factors and variables </li></ul><ul><li>But they can be meaningfully quantified </li></ul><ul><li>Optimal solutions can be developed </li></ul><ul><li>Messes. </li></ul><ul><li>These are characterised by s oft complexity </li></ul><ul><li>Timescales uncertain </li></ul><ul><li>People’s description of events is ambiguous </li></ul><ul><li>There are multiple interpretations and reconstructions of what the problem is. </li></ul><ul><li>Stakeholder groups will see things according to their stake in the problem </li></ul><ul><li>Thus there are many different ideas about what kind of solutions there might be </li></ul>
    24. 29. Introducing Change
    25. 30. Influence of Context on Strategic Change Exhibit 10.3
    26. 31. Forcefield Analysis Exhibit 10.4
    27. 32. Managing Change and Resistance Bedfellows Adversaries Allies Opponents <ul><li>Understand position </li></ul><ul><li>Don’t evaluate </li></ul><ul><li>Don’t make demands </li></ul><ul><li>Patience or removal </li></ul><ul><li>Disagreement </li></ul><ul><li>Keep relationships </li></ul><ul><li>Restate positions </li></ul><ul><li>Joint problem solving </li></ul><ul><li>‘ Marriage of </li></ul><ul><li>Convenience’ </li></ul><ul><li>Seek cooperation </li></ul><ul><li>Continually clarify </li></ul><ul><li>goals and gain ‘Buy-in’ </li></ul><ul><li>Confirm agreement </li></ul><ul><li>Openness </li></ul><ul><li>Don’t take for granted </li></ul>Agreement to Change High Low Trust High Low <ul><li>‘ Fencesitters’ </li></ul><ul><li>Explanations </li></ul><ul><li>Negotiation </li></ul><ul><li>Move to other box </li></ul>Different strategies for different groups <ul><li>The ‘forcefield’ of change is balanced between </li></ul><ul><ul><li>Positive factors driving change – vision, opportunity, benefits </li></ul></ul><ul><ul><li>Resisting factors – culture, power loss, </li></ul></ul><ul><ul><li>New factors – customer input, openness of debate, questioning </li></ul></ul>
    28. 33. Three Stages of Change <ul><li>Initiating Change </li></ul><ul><ul><li>Diagnosis </li></ul></ul><ul><ul><li>Creating perceived ‘Need for Change’ – crisis? </li></ul></ul><ul><ul><li>Generating Vision of Future – desirable AND achievable, inspirational AND aspirational, includes why world is changing </li></ul></ul><ul><ul><li>Focus on stakeholder support, clarifying goals and markets, prioritisation of key outcomes </li></ul></ul><ul><li>Managing Change </li></ul><ul><ul><li>Communicating the Vision </li></ul></ul><ul><ul><li>Creating the change team and resources </li></ul></ul><ul><ul><li>Empowering staff </li></ul></ul><ul><ul><li>Create short term wins – and publicise them </li></ul></ul><ul><li>Sustaining Change </li></ul><ul><ul><li>Importance of learning in the organisation: speed and diffusion </li></ul></ul><ul><ul><li>Individual and organisational level (capture and embedding in routines) </li></ul></ul>
    29. 34. Styles of Managing Change Style Means/Context Benefits Problems When effective Education/ Communic-ation Briefings Internalisation Trust Overcome lack of information Time consuming Unclear Incremental change/long duration/horizontal transforma-tional change Collabora-tion/Parti-cipation Involve in developing strategy Ownership/ improved quality Time/Within current paradigm Inter- vention Change agent coordinates/ controls Guided but with involvement Perceived manipulation Incremental/ non-crisis transformation Direction Use authority to set direction Clarity and speed No accept-ance/ill conceived Transforma-tional change Coercion/ Edict Explicit use of power through edict May succeed in crisis Least success unless crisis Crisis/rapid transform/auto-cratic culture
    30. 35. Roles in Managing Change (1) <ul><li>Change Agent </li></ul><ul><ul><li>Individual or group that effects strategic change in an organisation </li></ul></ul><ul><li>Strategic leadership </li></ul><ul><ul><li>The process of influencing an organisation in its efforts towards achieving an aim or goal </li></ul></ul><ul><ul><li>Charismatic leaders or Instrumental or transactional leaders </li></ul></ul><ul><ul><li>Removal of previous management </li></ul></ul><ul><ul><li>Changes in status symbols e.g. car parking, office space </li></ul></ul><ul><ul><li>Open communication </li></ul></ul><ul><ul><li>Rewards </li></ul></ul><ul><ul><li>Behaviours which reinforce new ways of doing things </li></ul></ul><ul><ul><li>Funding of supporting initiatives e.g. training </li></ul></ul><ul><ul><li>Resource allocation decisions </li></ul></ul><ul><ul><li>Support of change agents and teams </li></ul></ul>
    31. 36. Roles in Managing Change (2) <ul><li>Middle managers </li></ul><ul><ul><li>Facilitators or blockers? </li></ul></ul><ul><ul><li>5 roles in managing strategic change </li></ul></ul><ul><ul><ul><li>Implementation and control </li></ul></ul></ul><ul><ul><ul><li>Translators of strategy </li></ul></ul></ul><ul><ul><ul><li>Reinterpretation and adjustment of strategy </li></ul></ul></ul><ul><ul><ul><li>Relevance bridge between top managers and lower managers </li></ul></ul></ul><ul><ul><ul><li>Advisors to senior management on blockages and requirements </li></ul></ul></ul><ul><ul><ul><li>Source of new ideas as closer to changing environment (RAP theory) </li></ul></ul></ul><ul><ul><li>Top managers have to accept remoteness from where change occurs and focus on overall vision and monitoring effects </li></ul></ul><ul><li>Outsiders, e.g. new CEO, new management, consultants, key influencers (stakeholders) </li></ul>
    32. 37. Strategic Leadership Approaches Source: Adapted from Farkas & Wetlaufer 1996 Focus of attention Indicative behaviour Role of other managers Implications for change mgt Strategy Strategy analysis/ formulation Scanning markets/ technology Day-to-day operations Delegated Human assets Developing people Right people Coherent culture Strategy development devolved Recruit/develop people to manage locally Expertise Expertise as source of comp. adv. Improve expertise via systems Immersion in/ managem’t of expertise area Change in line with expertise approach Control Set procedures/measures Monitor performance for uniformity Ensure uniform perf. vs. measures Change monitored and controlled Change Continual change Communication/ motivation Change agents/open to change Change central to the approach
    33. 38. Challenging the taken for granted <ul><li>Need to change the paradigm </li></ul><ul><ul><li>Get people to see the realities </li></ul></ul><ul><li>Mechanisms </li></ul><ul><ul><li>Evidence from strategic analysis </li></ul></ul><ul><ul><li>Analysing what people take for granted </li></ul></ul><ul><ul><ul><li>Workshop sessions </li></ul></ul></ul><ul><ul><ul><li>Bring into open </li></ul></ul></ul><ul><ul><ul><li>Debate and challenge </li></ul></ul></ul><ul><ul><li>Scenario planning to overcome bias and cultural assumptions </li></ul></ul><ul><ul><li>Bringing managers face to face with reality (customers) </li></ul></ul>
    34. 39. Changing organisational routines <ul><li>Routines are the “way we do things around here” </li></ul><ul><ul><li>Can become core rigidities </li></ul></ul><ul><ul><li>Difficult to adapt to new strategies </li></ul></ul><ul><li>Mechanisms </li></ul><ul><ul><li>Identify critical success factors and underlying competences </li></ul></ul><ul><ul><li>Bring strategy down to operational levels </li></ul></ul><ul><ul><li>Changes in routines make strategy meaningful </li></ul></ul><ul><ul><li>Doing is better than thinking </li></ul></ul><ul><ul><li>Education/communication less powerful than involving people </li></ul></ul><ul><ul><li>Persistent extending and bending existing ways of doing things </li></ul></ul>
    35. 40. Communicating and Monitoring Change <ul><li>Effective communication possibly single most important factor for overcoming resistance </li></ul><ul><li>Importance of clarity of vision and strategic intent </li></ul><ul><li>Choices of media – effectiveness depends on complexity of change </li></ul><ul><li>Involvement of members of organisation in strategy development process </li></ul><ul><li>Two-way process – feedback is important </li></ul><ul><li>Emotional aspects important – emotions can induce negative or positive responses </li></ul><ul><li>Need to monitor change programmes </li></ul>
    36. 41. Effective and Ineffective Communication of Change Exhibit 10.10 Source: Adapted from R.H. Lengel and R.L. Daft, ‘The selection of communication media as an executive skill’, Academy of Management Executive , vol. 2, no. 3 (1998), pp. 225–232.
    37. 42. Why does Change Fail? <ul><li>Over 70% of transformational change programmes fail </li></ul><ul><li>Common causes </li></ul><ul><ul><li>Ritualisation and overload </li></ul></ul><ul><ul><li>Hijacking for different purposes </li></ul></ul><ul><ul><li>Erosion over time – loss of impetus </li></ul></ul><ul><ul><li>Reinvention – take over of change by established beliefs </li></ul></ul><ul><ul><li>‘ Ivory tower’ – too far removed from reality of business </li></ul></ul><ul><ul><li>Inattention to symbols of change </li></ul></ul><ul><ul><li>Lack of control over initiatives- inconsistency and confusion </li></ul></ul><ul><ul><li>Compliance but not change – superficial change </li></ul></ul><ul><li>Remedies </li></ul><ul><ul><li>Close monitoring of change outcomes </li></ul></ul><ul><ul><li>Understanding the culture </li></ul></ul><ul><ul><li>Involving people- doing, not being ‘done to’ </li></ul></ul><ul><ul><li>Acknowledge the challenge and create ‘realistic aspirations’ </li></ul></ul><ul><ul><li>Flexibility and willingness to improve the original plan </li></ul></ul>
    38. 43. Key Points <ul><li>Need to tailor approaches, styles and means of change to context </li></ul><ul><li>Strategic change differs in scope and nature </li></ul><ul><li>Diagnosis of organisational context and field </li></ul><ul><li>Analysis to identify blockages and levers </li></ul><ul><li>Different roles and styles for managing change </li></ul><ul><li>Levers for strategic change depend on type and context of change </li></ul>
    39. 44. Kotter on Management of Change Establish a Sense of Urgency Realistic assesment Crises, opportunity Empower others to Act Remove Obstacles Change systems / structures Encourage risk taking, new ideas and action Form a Guiding Coalition Group with power to lead change, working as a team Create Short Term Wins Viable improvement Reward for those involved Create a Vision To direct change effort Create strategies to realise it Consolidate and Continue to Change Credibility to do more Hire new employees Reinvigorate change process Communicate that Vision Use every vehicle available Coalition demonstrates new behaviours Institutionalise The New Link new ways to success Ensure leadership succession