managing change
TRANSCRIPT
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.1
Managing Change
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.2
Outcomes
• Identify the types of change and key drivers• Understand who and what are the resistors of
change and how resistance can be overcome• Explain and assess change processes
– management of organisational routines– political and symbolic processes– other change tactics
• Determine different styles of change management and their impact
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.3
Exhibit 14.1 Key elements in managing strategic change
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.4
Strategic Change Management
“There is nothing more difficult to take in hand, more perilous to
conduct, or more uncertain in its success than to take the lead in
the introduction of a new order of things”
Machiavelli
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.5
Causes and Dynamics of Strategic Change
Causes (Tichy 1983)
• Environment
• Business Relationships
• Technology
• People
Dynamics (Kanter, Stein & Jick
1992)
• Environment
• Life cycle differences
• Political power changes in the organisation
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.6
Environment
Values Resources
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.7
Environment
Values Resources
STRATEGIC EFFECTIVENESS
Pressures for discontinuous
change
Opportunities for continuous improvement
Ability to manage change
effectively
Efficiency and effectiveness
of existing strategies
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.8
Power and Politics• Relative power of organisation• Political activity
– Legitimate or illegitimate– Vertical or lateral– Internal or external
• Bases of power– reward and coercive power– legitimate– personal– expert– information– visible/invisible - ability to prevent decisions, control issues,
ensure certain issues are ignored
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.9
Paradigm
Controls
Organisation
Symbols
Stories
Rituals and
Routines
Power
CULTURAL WEB
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.10
Force Field Analysis
Equilibrium
Forces for change
Driving forces
Forces resisting change
Restraining forces
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.11
Change resistance grid
Resistors Undecided
Undecided Supporters
High change
resistantorganisatio
n
Low change
resistantorganisatio
n
Dis
sati
sfi
ed
Sati
sfi
ed
Exte
nt
to w
hic
h e
mp
loyees
are
sati
sfied w
ith
the s
tatu
s qu
o
Distrust Trust
Extent to which employees trust the organisation
Sourc
e:
Adapte
d f
rom
Wit
te (
1990
)
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.12
Nature of Change
Tuning Planned transformational
Adaptation Forced transformational
Reacti
ve
Pro
acti
ve
MA
NA
GE
MEN
T R
OLE
IncrementalChange
TransformationalChange
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.13
Overcoming Resistance
• Education and communication
• Participation and involvement
• Facilitation and support
• Negotiation and agreement
• Manipulation and co-option
• Explicit and implicit coercion
Kotter & Schlesinger (1979)
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.14
Prescriptive Approaches to Change
• Unfreezing– readiness to acquire or learn
new behaviour
• Change– Trying out new ideas– Altered power structures– Change champion
• Refreezing (participation, involvement & commitment– New behaviour patterns are
accepted– Supportive
– Rewards Lewin
1947
• Changing Identity of Organisation
– Response to environment• Coordination & Transition
- 5 Phases of organisational growth
• Control over organisational politics
Kanter Stein and Jick 1992
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.15
Emergent Approaches to Change
(Continuous)
Learning Theory– Team learning– Sharing views/vision– Exploring/ changing
ritual & beliefs– Skills development– Systems
management
Senge 1990
Five Factors Theory• Environmental Assessment
• Leading change
• Linking strategic and operational change
• Strategic human resource management
• Coherence • Consistency• Consonance
• Competitive advantage• Feasibility
Pettigrew & Whipp 1991
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.16
Internal change implementation
Gain support of key decisions makers and facilitators Change attitudes among employees who deal with customers Obtain employees’ commitment to making the strategic plan
work by • involving them in the ownership of the plan• rewarding them on the plans’ attainment
Train staff - develop new skills that will contribute to the effective implementation of plans
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.17
Exhibit 14.2 Types of changeSource: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change, 2nd Edn, Prentice Hall, Pearson Education Ltd, 1999
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.18
Exhibit 14.3 Contextual features of strategic change programmes
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.19
Exhibit 14.4 A forcefield analysis
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.20
Exhibit 14.5 Styles of managing strategic change
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.21
Exhibit 14.6 Organisational rituals and culture change
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.22
Exhibit 14.7 Political mechanisms in organisations
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.23
Exhibit 14.8 Turnaround: revenue generation and cost reduction steps