06/11/2014
1
Strategy in Action14: Managing
Strategic Change
Professor: Ulrich WagnerProfessor: Ulrich Wagner
Learning Outcomes
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
Assess the impact of the role and management styles of change agents
Assess the value of different levers for strategic change
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-2
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
06/11/2014
2
Premises of Strategic Change
Strategy matters
Context matters
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-3
Different approaches to managing strategic change are required
for different contexts
Exhibit 14.1 Key Elements in Managing Strategic Change
Diagnosis ofDiagnosis of context
Change agents
Leversfor
change
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-4
Managingchange
programmes
06/11/2014
3
Diagnosing the Change Situation
Types of change Context of change
Culture web Forcefield analysis
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-5
Culture web Forcefield analysis
Exhibit 14.2 Types of Change
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-6
06/11/2014
4
Exhibit 14.3 Context of Change
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-7
The Cultural Web
Stories Symbols
Powerstructures
Rituals/routines Paradigm
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-8
StructuresControlsystems
06/11/2014
5
What is a Forcefield Analysis?
A forcefield analysis provides aA forcefield analysis provides a view of change problems that need
to be tackled, by identifying forces for and against change.
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-9
Exhibit 14.4 A Forcefield Analysis
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-10
06/11/2014
6
Roles in Managing Change
Change agents Middle managersg g
Strategic leaders
Charismatic
Instrumental
Outsiders
g
Implementation and control
Sense-making
Reinterpretation and adjustment
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-11
Outsiders adjustment
Relevance bridge
Advisors
Styles of Managing Change
Education/Education/ Communication
Collaboration/Participation
Intervention
Di ti C i
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-12
Direction Coercion
06/11/2014
7
Levers for Change
Challenging the taken for grantedChallenging the taken for granted
Changing routines
Symbolic systems
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-13
Political systems
Other change tactics
Approaches for Managing Change
Theory EEconomic value
Theory ODevelopment of Organisational
capability
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-14
06/11/2014
8
What are Symbols?
S mbols are objects e ents actsSymbols are objects, events, acts, or people that convey, maintain, or
create meaning over and above their functional processes.
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-15
Rituals and Organisational Change
Rites of passage Rites of p g
Rites of enhancement
Rites of renewal
Rites of integration
degradation
Rites of sense making
Rites of challenge
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-16
g
Rites of conflict reduction
Rites of counter-challenge
06/11/2014
9
Power and Political Processes
Acquisition of resources
Association withpowerful stakeholders
Development ofSymbolic change
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-17
alliancesSymbolic change
What is Turnaround Strategy?
A turnaround strategy emphasizes the gy pspeed of change
and rapid cost reduction and/or revenue generation.
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-18
06/11/2014
10
Elements of Turnaround Strategies
Crisis stabilisation Refocusing
Management changes
Stakeholder support
g
Financial restructuring
Prioritisation of critical i t
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-19
Target market clarification
improvement areas
Aspects of Revolutionary Change
Clear strategic directiong
Combined economic and symbolic levers
Outside perspectives
Multiple styles of change management
W k ith i ti lt
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-20
Work with existing culture
Monitoring of changes
06/11/2014
11
Aspects of Evolutionary Change
Empowered organisation
Clear strategic vision
Continual change and commitment to experimentation
Transitional stages
Irreversible changes
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-21
Irreversible changes
Sustained top management commitment
Winning hearts and minds
Chapter Summary 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 p g p gsuch 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
Change agents my need to adopt different styles of managing change according to different contexts and in relation to the i l t d i t t f diff t
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-22
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
06/11/2014
12
Key Debate: Management of Change
from Top to Bottom?
1 What are the problems associated with top-down1. What are the problems associated with top-down or bottom-up views of change management?
2. If you were a senior executive which approach would you take and in what circumstances?
3. Are the different views reconcilable?
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-23
Case : Change at Faslane
1. What type of change is being pursued at F l ?Faslane?
2. Describe the change style of John Howie.
3. What levers for change are being used? What others might be used?
4. What problems of change could occur?
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-24
5. Assess the effectiveness of the change programme.