Risk Management and Strategic Planning Unit 11 Managing and Monitoring

Reading BookCh Tribe, J, (2010) Strategy for Tourism, Goodfellow Publishers, Oxford. 11 Capon, C. (2008) Understanding Strategic Management, Prentice Hall: Hemel Hempstead. 11 Tribe, J. (2005) The Economics of Recreation, Leisure and Tourism, Butterworth Heinemann, Oxford. - Johnson, G., Scholes, K., and Whittington, R. (2008) Exploring Corporate Strategy, Prentice Hall: Hemel Hempstead. 14

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

Discussion Point Why is it difficult to implement change? How can we measure the success or failure of a tourist destination?

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.

Unfreezing and Refreezing Lewin's model for creating successful organisational change identified three important stages. First the unfreezing of current organisational behaviour patterns is necessary in order to make the organisation more receptive change. Second, Lewin identified the importance of movement, which involves the carrying out of change or the reconceptualisation of the organisation. Finally, Lewin noted the importance of refreezing the organisation so as to institutionalise the change.

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

Calculation Calculation involves the identification of the likely impacts of a strategy both internally and externally to the organisation with a view to discovering where critical blockages may occur. These may inhibit the implementation of change and are known as resisting forces. At the same time it is important to record those factors (driving forces) which may help promote the desired strategy.

Force Field Analysis Force field analysis (Lewin, 1935) is a method of examining this. Its aim is to enhance the management of change by generating a tactical approach (Nutt, 1989). The steps in force field analysis are: Identification of planned change Identification of resisting forces Identification of driving forces Formulation of tactics to reduce or eliminate resisting forces Formulation of tactics to encourage driving forces

Communication Effective communication is at the heart of successful strategic implementation. Even organisations which engage in a systematic process of strategic planning may overlook this vital aspect so that the strategy may remain the property of senior management and its circulation may be intentionally or unintentionally restricted. Different models of communication of strategy may be located on a continuum which includes: democratic educative, and autocratic

Culture Some of the key factors in promoting cultural change can be summarised: induction programmes for new staff change of symbols use of language training programmes appointment of key personnel promotion and dismissal policies incentive schemes

Compliance Compliance addresses the question of how strategic change can be achieved, perhaps in the face of opposition. Change may involve deploying political processes, identifying and utilising sources of power (Mintzberg, 1983), and constructing a power base from which to operate. Key issues for achieving compliance include: control of resources alliances rewards and punishments charisma, and, managing of change skills

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

Risk Management and Strategic Planning Unit 11 Managing and Monitoring The End