STRATEGIC CHANGE LEADER

Dr. Ningky Sasanti MunirGraduate ProgramPPM School of Management

OUR AGENDA1. Introduction to Strategic Change

Leader(IN3N);2. Course Objectives;3. Pressures for Organizational Change;4. Types of Change;5. Assignment and grading system.

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CHANGE MANAGEMENT AS GRADUATE COURSE

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COURSE OBJECTIVESOn completion of this course you should be able to explain and discuss:

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WHAT IS CWHAT IS CHHAANgE?NgE?WHAT IS CWHAT IS CHHAANgE?NgE?

•The process by which organizations move from their present state to some desired future state to increase their effectiveness (Anderson & Anderson, 2001, p.5)

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MAIN READINGS

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1996 2005 2006 2008

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TYPES OF ORGANIZATIONAL CHANGE• REVOLUTIONARY

• Discontinuous

• EPISODIC

• Transformational

• STRATEGIC

• Total System

• EVOLUTIONARY

• Continuous

• CONTINUING FLOW

• Transitional

• OPERATIONAL

• Local option

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Burke, 2002, p.11-12

evolUTIONARY CHANGE•More than 95% of organizational changes

are evolutionary▫Incremental;▫Covering slow;▫The resistance are low;▫Controllable;▫Systematic (if planned)

•Examples: improvement programs, kaizen, incremental steps to fix a problem, changing a part of larger system.

NKY – PPM School of Management

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REVOLUTIONARY CHANGE

• Revolutionary change is a jolt (perturbation) to the organization system --- as a result NOTHING will ever be the same again▫ Strong resistance▫ Large scale▫ Top-down▫ (sometimes) Chaotic▫ In short period

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Bank EXIM

BAPINDOBBD

BDN

Burnes, 2000, p.304-306Currently Mandiri assets have grown to more than Rp 347,6 T today, NPL 5,85%, CAR 15,37% and Net profits Rp. 7,2 T

Bapindo has capital minus Rp 28,034,552 mil.

BBD has capital minus Rp 12,248,138 mil.

Bank Exim has capital minus Rp 6,444,830 mil.

BDN's has capital minus Rp 28,314,824 mil.

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RADICAL

INCREMENTAL

CORECORE

PERIPHERALPERIPHERAL

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EXTERNAL Pressures

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ECONOMY

POLITICS

SOCIAL

TECHNOLOGY

ORGANIZATION

COMPETITION

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POLITICS

Cell phone becomes a ‘must have’ lifestyle accessories

The liberalization of postal service business brings new competitive competitors, global and local players

600 Licensed independent postal companies, cargo and freight companies, public transportation companies also handle letters and parcels

The rapid advance of electronic information technologies has fulfilled the increasing demand for faster, cheaper, and more flexible communications services

The impact of high inflation rate and operational cost (materials) to post related items

IMPACT OF EXTERNAL PRESSURESBEFORE• PHOTOGRAPHY

INDUSTRY▫ High margin▫ Long product life cycle▫ The players:

FUJI KODAK KONICA AGFA

AFTER• DIGITAL IMAGING

INDUSTRY▫ Low margin▫ Short product life cycle▫ The players

The “oldies” New player Competitors from different

industry (I/T, electronics, computers)

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