Unit 11 Managing and Monitoring Professor John Tribe Tourism Strategy Unit 11 Managing and Monitoring Professor John Tribe

Learning Outcomes After studying this chapter and related materials you should be able to understand: management of change methods of monitoring methods of control identification of key factors for effective strategic management and critically evaluate, explain and apply the above concepts.

Management of Change A key challenge for many tourism organisations is that their structures were generally designed to solve yesterday's problems. Challenges to management of change include Degree of change Organisational adaptivity

Management of Change To compound this problem organisations may become "frozen" in a particular state (Lewin, 1952), not least because once a particular organisational structure and culture has evolved there is a strong tendency for structural and cultural reproduction. An organisation will tend to recruit, induct and reward its staff in line with its established culture, and the organisation will stay the same. How to manage change?

The Four Cs of Change The management of strategic change must pay attention to: calculation communication culture and, compliance

Skills and methods for managing change Beer & Nohria (2000) distinguish between two distinct approaches to strategic change. They label these “theory E” and “theory O”. Theory E, the hard approach, is change based on the pursuit of economic value Theory O, a soft approach, is change based on the development of organisational capability.

Control Mechanisms Control mechanisms to monitor outcomes include Performance targets Control systems Measurement of performance Corrective feedback

Corrective feedback The system of management control should follow up the cycle of performance measurement with any corrective measures that are to be taken in the case that actual performance does not match up to the performance targets of the strategy. This will involve the following steps: Identify performance gaps Identify causes of performance gaps Identify corrective action Instigate corrective action plan

Effective Implementation Critical Success Factors Pettigrew and Whipp's study of the management of change concluded that there were five critical success factors common in organisations where change had been successfully implemented. These were: sensitivity to the external environment. formulation of a strategy for change. translation of strategic plans to operational outcomes. effective human resource management. consistency and coherence of strategic planning.

Review of Key Terms Management of change: The process by which strategic change is identified and implemented. A frozen organisation: One which has become rigidly routinised. Four Cs of change: Calculation, communication, culture and compliance.. Force field analysis: Investigates forces that are either driving movement toward an objective (driving forces) or blocking such movement (resisting forces). Theory E: Strategic change based on the pursuit of economic value. Theory O: Strategic change based on the development of organisational capability. Performance Target: An outcome that is set for an organization or employee to reach within a specified period of time. Control system: The process for monitoring progress against strategic objectives. Performance measures: These include quality indicators, financial indicators and other indicators. Corrective feedback: Identify performance gaps, identify the causes of performance gaps, identify corrective action, instigate corrective action plan. Strategic implementation: Putting a strategy into action

Discussion Questions Many airlines are resorting to strategic alliances or horizontal mergers in moves towards more globalization. Choose an airline and conduct a force field analysis for such a strategy. Explain how success could be encouraged in implementing a tourism destination strategy using Pettigrew and Whipp's (1992) five critical success factors and Hrebiniak’s (2006) discussion of obstacles. Using examples from the tourism sector discuss the importance of control systems in strategy implementation. Discuss the significance of the 4 Cs in the management of change in a tourism organisation. Explain what Lewin (1952) meant by the freezing and unfreezing process in achieving strategic change

Unit 11 Managing and Monitoring The End Tourism Strategy Unit 11 Managing and Monitoring The End