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Notes Strategic Management 6th May, 2006.

Managing Strategic Change Corporate strategy invariably involves change for people working in Organisations. Sometimes most people at all levels resist change. Resistance to Change Whatever the cause for change, there will usually be some resistance to it, either from the individual or the Organisation. Reasons for Individual resistance include: 1. 2. 3. 4. 5. Self-interest Lack of trust and understanding Uncertainty Different assessments and goals Low tolerance for change

Organisational Resistance 1. 2. 3. 4. 5. Threats to power and influence Organisational structure Limited resources Fixed investments Inter organizational agreements Reasons for Resistance Anxiety Pessimism Irritation Lack of interest Organisational Change Change takes place continuously within theOrgansiation. The pace of change can be represented by two extremes, namely, 1. Slow organisational change 2. Fast organizational change Overcoming Resistance Involving those who resist the change process itself Building support networks Communications and discussion Use of managerial authority and status

What is strategic change? Strategic change is the proactive management of change in the Organsiation to achieve clearly identifiable strategic objectives. It may be undertaken using either prescriptive or emergent approaches. Consequently, strategic change involves the implementation of new strategies that involve substantial changes beyond the normal routine of the Organisation. In prescriptive theories, change means the implementation of actions that result from the decision to pursue a chosen strategy. In emergent theories, change can sometimes mean the whole process of developing the strategy, as well as the outcomes that result after it has been developed. This may involve experimentation, learning and consultation for those involved in the change.

Why is strategic change Important? Strategic change is accompanied by a degree of risk and uncertainty. Strategic change is therefore the implementation of new strategies that involve substantial changes to the normal routines of the Organisation. Analysis of the Causes of Strategic Change The two main classifications of causes of change are: 1. Tichys four main causes of strategic change 2. Kanta, Stein, Ticks three dynamics for strategic change Tichys four main triggers for change: 1. The environment 2. Business Relationships 3. Technology 4. People These need to be considered within the context of the Organisations dynamic and complex structure. Tichy suggests that change is not only inevitable, in such circumstances but can be managed to produce effective strategic results. Kanta et al causes of strategic change 1. The environment 2. The life cycle differences

3. Political power, changes inside the Organisation (as related to decision-making)

Pettigrew and Whipps Five Factor Theory of Strategic Change Pettigrew and Whipp their empirical study of strategic change identified five factors in the successful management of the process. These were, environmental assessment, leadership of change, the link between strategic and operational change, Human Resources aspects and coherence in the management of the process. See pg 777-779 in Lynch.

Developing a Strategic Change Programme The change program needs to address four (4) questions: 1. What areas of change are available? 2. What areas will we select and why? 3. Will people resist change? If so how can this be overcome? 4. How will people use the politics of the Organisation?