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TABLE OF CONTENTS

BACKGROUND TO ORGANIZATIONAL STRATEGIC CHANGE Background to change that exists in todays economy Models for strategic change Value of using strategic intervention techniques RELATING STRATEGIC CHANGE IN ORGANIZATIONS Need for strategic change Factors driving need for strategic change Resources implication not responding to strategic change LEADING STAKEHOLDERS IN DEVELOPING A STRATEGY FOR CHANGE Systems to involve stakeholders in planning for change Strategy to involve stakeholders Strategy for managing resistance to change REFERENCES

1. BACKGROUND TO ORGANIZATIONAL STRATEGIC CHANGE If the organizational change is needed to be discussed and explained, it is demanded to explore the situation that forced the business firms and other organizations to engage them in the process of organizational strategic change. It was the after ages of World War II when it was recognized to increase efficiency. The researchers and organizational theorists followed the discussion of Fredrick Taylor in his attempt to describe the effectiveness of organization in scientific approach. The efficiency of the work is required that sudden changes must be made to the process and procedures of doing things. The human are not machines and they should not be treated as machines. The business was having a strong competition as they are facing now. The factors that strongly differentiate one organization from the other is due to the strategic changes. These strategic changes distinguish one business from the other on the basis of quality of products and services.

1.1 Background to change that exists in todays economy In the current era of environment the organizations must remain ready to respond to the demands of their customers. The extent to which the organization can act and react for this dynamic demand depends upon their ability to be a flexible organization. Therefore the flexibility can be taken as the ability of the organization to act and react to changes. There are certain internal and external determinants to change. These change factors can be direct or indirect. The strategic organizational change is also referred as the flexible strategic planning process. As the organizational change has become a compulsory part of the organizational planning and formulating organizational strategies. In the modern situation and environment the strategic programs are not enough and must be added with the change management and contingency planning. Therefore it can be considered that the strategic change includes frequent initiatives that are flowed from top to bottom of the organizational hierarchy. It also had some clear effects on change impression. There are two basic sources of initiating strategically organization change which are internal and external to the organization. The changes can be triggered from within the organization. Such changes could be new vision and mission. When taking about the external factors these include the emergence of the new competitors, new technology, new leadership etc.

1.2 Models for strategic change In some of the situations the changes are easy to make where as in some situations these are difficult to make. The changes that are categorized as hard complexity are found to be easy to achieve. Whereas the change situations that seems to be soft complexity where high level of emotions are involved are difficult to achieve. The suggested model for the strategic change is based upon certain assumptions. The assumptions are listed below in order to make the situation clearer.

This model is meant for the situation where the problem is thoroughly understood and most of the people agree to the situation The situation in which the problem can be taken in the quantitative pattern. The system under study is less complex. The situation in which the unitarist ideology prevails.

The model described below will provide a systematic way of finding the objectives of the change. The setting of goals enters into a new phase of suggesting a range of options for actions that can be tested against some criteria. The process can divided into three phases. The first is Descriptive Phase that describes the situation, setting the objectives and deciding for performance measurement of the change. The second phase is Option Phase that involves thoughts about what may be done and considering options for the change while evaluating each option. The third and last is the Implementation Phase which encompases the selection of appropriate option. It also involves putting feasible plans into implementation and monitoring results. The model can be detailed as: Situation summary Identify change objectives Performance measure Option generation Options editing & detailing Options evaluations Implementing the change Consolidating and carrying through

1.3 Value of using strategic intervention techniques The intervention means the set of some planned activities for change that are either performed by the internal or external people. The logic behind such intervention is to help the organization to increase the effectiveness in the organizational processes. The strategic intervention may have the following characteristics: The intervention must base upon the true information about the functions of the organization. The intervention must provide a free opportunity to the employees The intervention must seek a gain from the members internal commitment to these choices.

Actually the intervention is meant to be ending in fruitful changes and the management must show commitment to implement these proposed changes. Many of the change managers believe that the intervention must not be allowed and the changes must be kept secret before implementation. These situations can be successful but not implementable ion all situations. In todays educated and aware environment no one likes to accept anything without questions.

The employees like to be engaged in all sort of decision making especially the decisions which are related to them. A failure to provide such opportunity to the employee gives a clear message that they are not relying by the senior managers. Moreover this change is needed to be implemented by the employees. Its importance is also priceless that any expected change cannot be kept totally secrete. A failure to provide a proper communication about the expected change may result in the bulk of rumors and a sense of fear about a certain possible change. The morale of the employee also goes down if there intervention is not liked by the seniors. The support from the employees becomes difficult to get.

2. ISSUES RELATING STRATEGIC CHANGE IN ORGANIZATIONS

2.1 Need for strategic change In most of the cases the change process are complicated. The process of change can be either fast or slow. It can also painful. It all depends upon the change catalyst, the change will proceed at its own speed. The management is dragged in an unwanted situation. It is true that the human are by nature against the change. At the same time the change is not accepted by the business. Therefore the discussion can be summarized as if we want to implement a change in our organization then how much pain we are willing to incure in order to support the change agent. The first thing needed to be asked is to determine the causes of changes in the organization. In general there are three modes of change which are: Forced Telling Participatory Transformational

By determining the root cause of the change we can judge that which sort of change we are dealing with in our business. The situation that encounters a change may be financial, technological, environmental, economic or human. The driver of the change may be internal or external like new competitors, advanced technology, change in ownership or restructuring in the organization. It may be dissatisfaction of the employees or vendors. In case of above mentioned situations the change becomes as compulsion. The environment of the todays business is in constant change. The normality that the managers and employee seek is almost illusive. Nothing in the business remains constant but uncertain. The rate of change is becoming faster than ever and it is due to the tremendous flow of information and rapid communication tools. The rapid growth in the market size and the smaller product life cycle is creating the demands of the customer more dynamic. The producers are bound to change their inventories and are shifting from Just-in-Time to Just-in-Case. The traditional practices have been changed and we have to adopt the new technology, new ways of promotion and latest ways of doing business.

2.2 Factors driving need for strategic change As discussed above the changes can be due to internal and external sources. The tendency to take actions against the external sources is much more compulsory than the internal sources. Just as an example the competitor will increase he emphasis on product development that ultimately forces the engagement of financial and human resources. Such changes are forced changes that forces and pushes the organization for the reaction management. Sometimes the changes are planned and most of the time immediate and urgent responses. The human are not willing to accept the change they like the rule of thumb that states that we have always done that way so it is the best way. This statement is no longer valid in the organizations. The answer to this thought is the why not give it a try that focus on performance drivers by the support of costs, quality, speed and services.

Following is the list of different drivers for strategic change. Business Processes The changes can be initiated due to the running business process. The updation required in the business process with the passage of time. The processes can be simples enough like taking phone calls and can be detailed as developing a new product. The target of the new business is to obtain better efficiency, a reduced cost or an increase in the inventory operations.

Job and Departmental Structuring The management of each department likes to see right person at the right job. For the accomplishment of this target most of the time job rotations are required that means a change. Sometimes this change is not accepted by the employees. This acceptance of resistance to change is the personal factor of each employee. The human resource management department better knows that who is fit of which job. This change can be minor or major from a simple departmental shift to new hiring and firing.

Management Mindset The managers are the strongest catalyst for change. Their mindset (acceptance and rejection) for the change is critical for the success or failure of the change. It is desired that the management must think in terms of leading rather than doing the things. Whenever a change in job and department structure is required it is seemed to

be due to the management mindset. That is why this factor of change may be given the highest weight to the strategic change.

Performance Drivers and Measurement Systems In the process of management one of the function and factor is controlling, this function comes into action when the process it not found to be achieving the targets. If the projects seems to be de-tracked or behind schedule then the change is desired. Therefore the performance drivers that are taken to achieve the targets may be changed. The controlling system of the organization also triggers the change.

Beliefs, Values, and Culture The culture, norms, values and organizational belief also initiates the change. Just as an example if the customer service department does not believe that satisfied customer is the soul of organization, it would be difficult to manage the things. On the other side if the belief is to create a satisfied customer than every change will be found and accepted in the organization and specific departments. The changes that require a cultural shift are difficult to manage but yet becomes necessary most of the time.

2.3 Resources implication not responding to strategic change The strategic changes are becoming compulsory for the organization. They have to respond to the changes desired within organization and outside the organization. Likewise the use of information technology was not used in the past but now it is being used at an extent at which that was never thought. That is why the organizations who took the initiative to change in a rapid manner had remained in the competition but with a delayed response created many problems. The organizations that ignored these changes are no more found in the industry or competition. The flexibility to change is the basic idea behind strategic change. At the most minor level it is learnt that the sticks that do not bent with the pressure ultimately brake down. The same rule is applied on the organizations that they need to change with the change demanded. Even if the change is not triggered by internal or external sources even then the up gradation in any process must be considered. The changes must be taken as an active process rather than a

proactive process. In nutshell it can be stated that without frequent and required changes the resources are just wasted rather than utilized.

3. LEADING STAKEHOLDERS IN DEVELOPING A STRATEGY FOR CHANGE

3.1 Systems to involve stakeholders in planning for change The stakeholders are the persons or entities who are involved in the business operations. The success of the organization is associated with the success of those persons or business. The organization struggles to support the stakeholders and the stakeholders also put efforts to support the organization. It means both have a mutual cooperative relation. Whenever it is required to involve anybody in the organizational operations it is desired to involve them in the process of decision making. All the pros and cons of the business must be communicated to them. These gestures will boost up the confidence among the stakeholders and they feel more comfortable while participating in the planning process. The annual meeting, the formal and informal gathering are the tools to increase the involvement of the stake holders in the business process and strategic change. In the change management it is observed that the change becomes successful is the stakeholders are involved in the planning process of the change.

3.2 Strategy to involve stakeholders The involvement of the stakeholders is very much needed. The stakeholders must be involved while planning and implementing the change. It is observed that most of the time the stakeholders are ignored till the process of implementation. This ignorance creates resistance to change that is why the strategies must be adopted to keep them involved in the change process.

Showing reliability in them Communicating the plans and targets Considering them as business partners

3.3 Strategy for managing resistance to change It is a normal behavior of the employees and routine observation of the manager to experience a resistance to change. When it is understood that the mangers have to face resistance to change then precautions must be taken to tackle that resistance to change. More over the sources of resistance must be highlighted to modify the efforts towards the change. It is another school of thought that resistance is a healthy aspect as it creates more thoughts and better planning for a change. As a leader the management to change resistance requires to think in different angles before the targets are achieved. For this purpose the managers must keep an eye over the feelings of the employee in order to reduce the resistance to change. Some of the strategies that are used to minimize the resistance to change are:

Involving the parties who are interested in changes. The suggestions must be accepted from them for a change. The need of change must be clearly communicated not only to the participants of change but also to the non-participants. Disrupt only those things which are needed to be changed; we cannot make all changes at once. The change must be made flexible by dividing it into phases whenever it is possible. The change managers must be honest and open to all. Space must not be allowed to the employees to engage into a status Quo situation The positive aspects of the change are more highlighted and by proper communications to fright that are associated to change must be minimized. The training programs must be engaged to develop the basic skills among the employees and opposing a resistance to change.

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References