1. Strategy in Action 14: Managing Strategic Change

2. Learning Outcomes (1)
Identify the scope of a required strategic change
Analyse how organisational context might affect the design of strategic change programmes
Undertake a forcefield analysis to identify forces blocking and facilitating change
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3. Learning Outcomes (2)
Assess the impact of the role and management styles of change agents
Assess the value of different levers for strategic change, including the management of organisational routines, political and symbolic processes and other change tactics
Identify the pitfalls and problems of managing change programmes
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4. Premises of Strategic Change
Strategy matters
Context matters
Different approaches to managing
strategic change are required
for different contexts
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5. Exhibit 14.1 Key Elements in Managing Strategic Change
Diagnosis of
context
Change
agents
Levers
for
change
Managing
change
programmes
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6. Diagnosing the Change Situation
Types of change
Context of change
Culture web
Forcefield analysis
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7. Exhibit 14.2 Types of Change
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8. Exhibit 14.3 Context of Change
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9. The Cultural Web Stories Symbols Rituals/ Power routines Paradigm
structures
Control
systems
Structures
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10. What is a Forcefield Analysis?
A forcefield analysis provides a view of change problems that need to be tackled, by identifying forces for and against change.
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11. Exhibit 14.4 A Forcefield Analysis
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12. Roles in Managing Change
Change agents
Strategic leaders
Charismatic
Instrumental
Outsiders
Middle managers
Implementation and control
Sense-making
Reinterpretation and adjustment
Relevance bridge
Advisors
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13. Styles of Managing Change
Education/
Communication
Collaboration/
Participation
Intervention
Direction
Coercion
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14. Challenging the taken for granted
Levers for Change
Challenging the taken for granted
Changing routines
Symbolic systems
Political systems
Other change tactics
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15. Approaches for Managing Change
Theory E
Economic value
Theory O
Development of
Organisational
capability
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16. What are Symbols?
Symbols are objects, events, acts, or people that convey, maintain, or create meaning over and above their functional processes.
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17. Rituals and Organisational Change
Rites of passage
Rites of enhancement
Rites of renewal
Rites of integration
Rites of conflict reduction
Rites of degradation
Rites of sense making
Rites of challenge
Rites of counter-challenge
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18. Power and Political Processes
Acquisition
of resources
Association with
powerful stakeholders
Development of
alliances
Symbolic change
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19. What is Turnaround Strategy?
A turnaround strategy emphasizes the speed of change and rapid cost reduction and/or revenue generation.
Use Marks and Spencer, begin at 2:40 (on growing business) and stop at 3:30.
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20. Elements of Turnaround Strategies
Crisis stabilisation
Management changes
Stakeholder support
Target market clarification
Refocusing
Financial restructuring
Prioritisation of critical improvement areas
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21. ValuesJam at IBM Which change levers are evident?
Compare the values-based approach to a programme of revolutionary change or reconstruction.
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22. Aspects of Revolutionary Change
Clear strategic direction
Combined economic and symbolic levers
Outside perspectives
Multiple styles of change management
Work with existing culture
Monitoring of changes
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23. Aspects of Evolutionary Change
Empowered organisation
Clear strategic vision
Continual change and commitment to experimentation
Transitional stages
Irreversible changes
Sustained top management commitment
Winning hearts and minds
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24. Chapter Summary (1)
There are different types of strategic change which can be thought of in terms of the extent of culture change required and its nature
It is important to diagnose wider aspects of organisational context such as resources and skills that need to be preserved, the degree of homogeneity, capability, capacity, readiness for change, and the power to make it happen
The cultural web and forcefield analysis are useful as means of identifying blockages to change and potential levers for change
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25. Chapter Summary (2)
Change agents my need to adopt different styles of managing change according to different contexts and in relation to the involvement and interest of different groups
Levers for managing strategic change need to be considered in terms of type of change and context of change. Levers include surfacing and challenging the taken for granted, the need to change operational processes, routines and symbols, the importance of political processes, and other change tactics
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26. Key Debate: Management of Change from Top to Bottom?
What are the problems associated with top-down or bottom-up views of change management?
If you were a senior executive which approach would you take and in what circumstances?
Are the different views reconcilable?
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27. Case Example: Change at Faslane
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28. Case Example: Change at Faslane
What type of change is being pursued at Faslane?
Describe the change style of John Howie.
What levers for change are being used? What others might be used?
What problems of change could occur?
Assess the effectiveness of the change programme.
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