IMPLEMENTATION AND CHANGE Strategic Management IMPLEMENTATION AND CHANGE Prof. Dr. E.Vatchkova

CONTENTS Understanding change Factors, causing change Typology Contextual features of change The process of strategic change Forcefield analysis Overcoming resistance to change Change strategies and tactics Communicating change

1. Understanding change Constant process “Status” of contemporary organization Main competitive advantage Means for long-term survival Managerial competence and competency

2. Factors, causing change External triggers: technology customer’s tastes Competitor’s activities Materials Legislation Social or cultural values Economic circumstances

Internal triggers to change Job design Product design Office and factory layouts Allocation of responsibilities Technology

Typology Individual, group, organizational Innovative, adaptive, radical Reactive, proactive Technological, administrative, people Wanted, compulsory By stages, divisible, trial, reversible, non-reversible Concrete, known, relevant, attractive

A Generic Typology of Organizational Change l Radically Innovative Change Innovative Change Adaptive Change “Introducing a practice new to the industry” “Reintroducing a familiar practice” “Introducing a practice new to the organization”

Types of strategic change SCOPE Transformation Realignment Evolution Adaptation Revolution Reconstraction Incremental NATURE Big Bang

Contextual features Time Scope Preservation Diversity Capability Capacity Readiness Power

Steps in the change process Levin-Schein model: 1.unfreezing, 2.changing, 3.refreezing Richard Daft model: Need Idea Proposal Decision to adopt Implementation Resources

FRAMEWORK FOR MANAGING STRATEGIC CHANGE Diagnosing the change situation Types of strategic change The importance of context Organizational culture Forcefield Analysis Management styles and roles Styles of managing change Change agency roles: Strategic leaders Middle managers Outsiders Levers for managing change Structure & Control Routines Symbolic processes Political processes Communication Change tactics

Force field analysis Identifying forces for and against change What aspects of the current culture might aid change? What aspects of the current culture would block such change? What is to be introduced or developed to aid change?

Forcefield analysis PUSHING High-quality service Ethos of hard work Flexibility Devolved services RESISTING Workload/overload Firefighting Departmentalism Departmental barons Formality of management Stories of “the good old days” Blame culture Deference

Political mechanisms in organization ACTIVITY AREAS RESOURCES ELITES SUB-SISTEMS SYMBOLIC KEY PROBLEMS Building the power base Control Acquisition Sponsorship of / Associ-ation with elites Alliance building Team building Building on legitima-tion Time Dualty of ideas Existing elites Overco- ming resistance Withdra-wal Use of “counter-intelli-gence” Breakdown or devision Association with: change agent, Respected outsider Foster momentum for change Sponsor-ship/ reward of change agent Attack or remove le- Gitimation Foster confuson, Conflict and ques- tionning Striking from too low a power base Need for rapid rebuilding Achieving Comp-liance Giving resources Removal of resis-tant elites Implementation and collabo-ration Applause/reward Reassurance Converting the body of the organi-sation

Change strategies Education and communication Collaboration/participation Invention Direction Coercion/edict

STYLES OF MANAGING STRATEGIC CHANGE I Means /Context Benefits Problems Education & Communi-cation Group briefings assume internalization of strategic logic & trust of top management Overcoming lack of (or miss) information Time consuming Direction or progress may be unclear Collaboration / Participation Involvement in setting the strategy agenda &/or resolving strategic issues by taskforces or groups Increasing ownership of a decision / process May improve quality of decisions Time consulting Solutions / outcomes within existing paradigm Circumstances of effectiveness Incremental change or long-time horizontal transformational change

STYLES OF MANAGING STRATEGIC CHANGE II Means / Context Benefits Problems Circumstances of effectiveness Intervention Change agent retains coordination/control: delegates elements of change Process controlled but involvement takes place Risk of perceived manipulation Incremental/non-crisis transformational change Direction Use of authority to set direction & means of change Clarity & speed Risk of lack of acceptance & ill-conceived strategy Transformational change Coercion/edict Explicit use of power through edict Successful in crisis or state of confusion Least successful unless crisis Crisis, rapid transformational change or change in autocratic cultures

Communication of change Face to face (one-to-one or group) Interactive (e.g. telephone, video, conferencing) Personal “memoing” (e.g. tailored memos, letters) General bulletins (e.g. circulars, announcement on notice boards)

Effectiveness of communication Routine Complex Overly rich communication Causes confusion Rich communication for complex change EFFECTIVE COMMUNICATION Routine communication for Routine change Too little information and sensitivity leads to mistrust and lack of commitment

TRENDS CREATING CHANGE in the ………….. Industry Write your ideas for how each trend impacts the ….. Industries and challenges human resource managements Impact on …………… Industry Challenges for Human Resource Management Trends Technology: Regulations: Economy: Business: Markets and Customers Competitions: Family and Social issues

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