Strategic Change Management

Definition of Change

Implies making an essential difference

often amounting to a loss of original
identity or a substitution of one thing for
another.
 Change Management
• Change Management provides a structured
approach for making changes in a planned and
systematic fashion to effectively implement
new methods and processes in an ongoing
organization. The goal is to prepare
stakeholders for the transformation, ensure
that they are knowledgeable to face change in
a dynamic work environment, and ultimately
ready to embrace the change.
 Environmental Triggers of Change

The environment is:

‘All factors, including institutions, groups, individuals, events,
etc., That are outside the organisation…but that have a
potential impact.’

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 Some Elements in an Organisation’s Environment
 Markets, clients, customers
 Suppliers
 Government, regulatory bodies
 Trade unions
 Competitors
 Financial institutions
 Labour supply
 Levels of unemployment
 Economic climate
 Technological, computing, info systems, e-commerce, internet advances
 Globalisation of trade
 Political ideology
 Family structure
 Distribution of wealth

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 External Environments (a)
 The use of the mnemonics PETS, or PEST, or STEP draws
attention to the multiple facets of the external environment.

 The speed at which the internet has come to be used in

almost every type of organisation (as well as the ones which
are built entirely upon its capacities) is a clear example of the
influence of the TECHNOLOGICAL ENVIRONMENT.
 Another example of the impact of this sector on
organisational life is the threat to employee rights of using
surveillance monitoring of emails and internet use, and the
advent of sexual harassment via the sending of unsolicited
pornographic emails.

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 External Environments (b)
 The POLITICAL ENVIRONMENT is constantly changing.
 Governments change and new alliances are formed with old
ones broken.
 With the advent of the European Union and the Common
European Currency, no longer do individual countries have
sole power over what laws apply and even what economic
policies they might pursue.
 Groups such as the ASEAN-4 Group form significant trading
blocs which must catch the attention of organisations trading
worldwide.
 The attack upon the World Trade Center Building and the
Pentagon, is an example of an event, whose influence will
continue to be felt in a multitude of ways for many years
hence.

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 External Environments (c)
 The ECONOMIC ENVIRONMENT has always been of
the utmost importance in forcing organisations to
second guess what competitors might do and the
changing needs and desires of actual and potential
customers.
 Intertwined with all these aspects of the external
environment, as they are with each other, is the
SOCIO-CULTURAL ENVIRONMENT.
 Demographic changes, changes in living, working and
leisure pursuits impact upon people’s needs and
wants and the capacity of organisations to change to
meet them.

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 Some Elements in an Organisation’s Environment

Overall points:
 The various aspects of the PETS environment are interrelated
(e.g. socio-cultural factors will influence economic factors and
vice-versa).
 Some factors can be categorised in more than one sector.
 Few ‘triggers’ for change emerging from the external
environments can be responded to without taking other
factors into account.
 Any force for change has multiple and complex causes.
 Organisations which ignore this deep complexity are unlikely
to prosper.

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 Change Management effort
Leadership identified the risks of transforming logistics policies,
processes, and technologies to better support the
organization.
• Leadership’s concern was that failure to address the issues
around transformation could result in:
• Decreased productivity — pre-and post transformational
implementation;
• Loss of key talent across the logistics arena;
• Inability to successfully implement change solutions as
envisioned;
• Program delays and budget overruns;
• Failure to realize the anticipated benefits of the change
program; and
• Strained relationships among stakeholders.
Competition Computers

Complexity Change
 Organisational Life Cycle (three phases)

Unfreezing Changing Refreezing

• Give reasons. • Explain the benefits. • Show top

• Be empathetic. • Identify a champion. management’s support.
• Communicate clearly. • Get input from • Publicize successes.
employees. • Make midcourse
• Watch timing. corrections.
• Maintain job security. • Help employees deal
• Provide training. with stress.

• Proceed at a
manageable pace.
 Factors of success
• Corporate objectives
• Management style and system
• Business strategy
• Organizational structure
• Quality of human resources
• Working climate and
• Leadership
 Factors of failure
• Parochial self-interest. Some people are more concerned
with the implication of the change for themselves and how
it may affect their own interests, rather than considering
the effects for the success of the business.
• Misunderstanding. Communication problems; inadequate
information.
• Low tolerance of change. Certain people are very keen on
feeling secure and having stability in their work.
• Different assessments of the situation. Some employees
may disagree with the reasons for the change and with the
advantages and disadvantages of the change process.
 Types of Organizational Change
• Organization-wide Versus Subsystem Change
Examples of organization-wide change might be a major restructuring,
collaboration or “rightsizing.”
Examples of a change in a subsystem might include addition or removal
of a product or service, reorganization of a certain department, or
implementation of a new process to deliver products or services.
• Transformational Versus Incremental Change
An example of transformational (or radical, fundamental) change might
be changing an organization’s structure and culture from the
traditional top-down, hierarchical structure to a large amount of self-
directing teams.
Examples of incremental change might include continuous improvement
as a quality management process or implementation of new
computer system to increase efficiencies. Many times, organizations
experience incremental change and its leaders do not recognize the
change as such.
• Unplanned Versus Planned Change
Unplanned change usually occurs because of a
major, sudden surprise to the organization,
which causes its members to respond in a
highly reactive and disorganized fashion.
Planned change occurs when leaders in the
organization recognize the need for a major
change and proactively organize a plan to
accomplish the change.
 Levels of Change
There are seven Levels of Change as follow

• LEVEL 1: EFFECTIVENESS - DOING THE RIGHT THINGS.

• LEVEL 2: EFFICIENCY - DOING THINGS RIGHT.
• LEVEL 3: IMPROVING - DOING THINGS BETTER.
• LEVEL 4: CUTTING - DOING AWAY WITH THINGS.
• LEVEL 5: COPYING - DOING THINGS OTHER PEOPLE ARE
DOING.
• LEVEL 6: DIFFERENT - DOING THINGS NO ONE ELSE IS
DOING.
• LEVEL 7: IMPOSSIBLE - DOING THINGS THAT CAN'T BE
DONE.
Levels of Change cont.