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Strategic Change In An Organisation

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Questions:

1.Discuss Models of Strategic Change.

2.Examine the need for Strategic Change in an Organisation.

3.Develop Systems to Involve Stakeholders in the Planning of Change.

4.Develop Appropriate Models for Change.
 
 

Answers:

Introduction

Strategic change in an organisation is associated with the change in the management and modification in the mission, vision and objectives to achieve a specific targeted goal. The reason behind strategic change in the management is rapid, dynamic changes in surroundings and volatile buying behaviour of consumers (Cummings and Worley, 2014). Changes in the management create more opportunities and explore new growth areas for the organisation. These changes are mainly influences by various internal as well as external factors of the organisation. Moreover, changes in the market place are persistent and competition is also becoming intense day by day. And to meet with these contemporary changes and competitive environment, strategic changes in the management are essential to adjust theory and planning of the organisation.

The strategic change intervention improves the organisational productivity and functions at different level. It strengthens the individual and team response with the active leadership. It derives changes from current strategic aim of an organisation with the transition in coveted future strategic goals (Cummings and Worley, 2014). Therefore, this study is highlighting the significant changes in an organisation. For this purpose, planning changes has been explored with theory and pertaining issues in model for changes. It also illustrates the strategy of change developed involving stakeholders of the organisation. Apart from that, the report has also been supported by factual information on strategic change project.        

1.Models of Strategic Change

The main influence that forces strategic change in an organisation entails internal as well as external factors. Where, changes are permanent in today's business world, it is required to ensure the competitive position of the organisation by developing the strategic model of change (Hiatt, 2006). The model should be considered with the future desired organisational objectives and current state of the firm. Thus, for this purpose some of the model of change is described as follows:

  • Lewin's Model of Change Management: This model was created by Kurt Lewin in 1950 who was a psychologist. As per his inference, he found that people wants to deal and operate within their own space and safety zone (Simms, 2008). To change the management scenario and explore opportunities, he explained the process in three stages that are first, Unfreeze- management should make efforts and motivate its staff to fall out of this attitude and tenancy. Second is Transition which leads to major and perpetual changeover through reassurance and apt leadership by the management (Simms, 2008). Third is Refreeze, after implementation of strategy successfully, staff will have to follow new guidelines and control which is refreezing the staff. Though, Lewin's Model take time to enact, yet it is the most simple and effective way to develop change in management.
  • Kotter's 8 steps Change Model: John Kotter is the developer of this Model of change that aims to turn the transition into a campaign. Leaders articulate the requirement and reason for the change to their staff; they assure those companies benefit and ensure their growth prospective to their employees (Kotter, 2012). This urgent need for change enables employees to acquire and enact changes in the organisation. The model embroils eight steps as follows: 1) develop comprehension and urgency for change in the organisation. 2) Selection of dutiful and hard-working key team members. 3) Set objectives and foresightedness for change involved in the process. 4) Establish a sound cognizance regarding change requirement (Kotter, 2012). 5) Motivate and inspire team members for change in the organisation. 6) Set projected objectives and aim of the organisation for short term application. 7) Try to accept the change in the organisation and follow it steadily. 8) Make it a long sustained strategic goal for the organisation (Kotter, 2012). These steps are very easy to emerge and more focused on acceptance and preparation for change. However, no step can be skipped and the process takes a long time to complete.
  • ADKAR Model for Change: This model is specifically for change in the management and one of the most implemented models for strategic change in an organisation developed by Prosci. It is based on the five elements that must be concerned for the change dealing in individual level effectively (Hiatt, 2006). ADKAR acronym used as Awareness of the purpose of change, Desire to involve in significant change, Knowledge on the strategy and proper implementation for dealing with situation and Ability to adopt the changes positively executing new behaviour and cognition (Talloo, 2007). Last is Reinforcement for perpetual change and maintaining it with the vulnerable environment.
  • McKinsey 7-S framework: It has been found in 1980s by McKinsey and Company which is implemented with the focus of 7 stages. The steps are as follows: Structure that gives the examination of structure of the company and potential to execute the model of change. System – system focuses on the updating and discards of old system and replaced with new one (Cummings and Worley, 2009). Skills – it will be used to enhance the effect of change in the organisation by utilising abilities and talented employees and key partners of the firm. After that, Staff is responsible for the successful execution of change, thus people of business should be from diversity and their turnover structure should be précised. Strategy- the apt strategy will be decided by the competitive analysis and its model’s implementation can decide the future of the organisation (Cummings and Worley, 2009). Last is Shared value- it is mission and objectives that are projected via change in the management by every single person stakeholders of the company

Relevance of models with current economy

Every change in an organisation should be executed slowly, systematically and steadily. As per Kotter's model of change, the implementation of any change should be incorporated step by step and not by rushing into transformation. In addition to this, today's business environment is very unpredictable which requires urgency for the change in Organisation steadily. For this reason organisation should always inspire and motivate its employees with urgent need and with coherent comprehension of the concept of change (Reed, 2017). The current economy is strongly uncertain and intensely competitive, thus it requires some sustainable approach to deal with the situation. Along with this, it is very vital for an organisation to integrate its stakeholders specially employees in the planning and strategy of change. It will help the company to utilise them as a valuable asset of the organisation and bring their loyalty and commitment towards organisation.

 


Furthermore, if a company is not able to communicate the need for change to its employees or adopts a modest way to deal with the change, it will indeed desert the process of change. Consequently, it will dwindles the environment and discourage employees for the change. In order to avoid this situation, Kotter's model of change will aid company in overcoming the volatile environment and redesign the organisation (Griffin and Moorhead, 2011). For this reason, leaders of the company must articulate their method clearly and efficiently to address the change appropriately. Management should also significantly focus on the active participation of team members that encourage and ameliorate the change effectively.

Apart from this, Lewin's and ADKAR model of change is more straightforward to deal with the problems in surrounding. The top management act as a reader and give full authority and confidence to the employees or team members to act in the change. Moreover, the model emphasised on the implementation of sound communication system between the team and top level management. For this purpose, they launch new equipments and techniques to resolve the issue (Reed, 2017). To make the change static they provide apt reward for the team that motivates and encourage them to incorporate change more effectively. This approach was also executed by Samsung Company due to competitive and social pressure. Top management of company shows confidence in its team and authorise them for destroying their poor quality handsets. Thus, this case shows that the Lewin's model of change can be applied at the time of very odd and adverse conditions such as political or legal changes in the environment (Reed, 2017).         

Importance of using strategic intervention techniques in organisation

Strategies and techniques to solve the issues associated with the changes in the business environment are focused on the long term goals and sustainability. Likewise, the implementation of strategic intervention should be done in appropriate timing and with certain attentiveness otherwise It may affect the organisation harmfully. It makes dismal in the internal environment of the organisation and demoralise team members (ASL, 2015). Social intervention is a pivotal part of management and holds a prestigious position which alleviates the growth and development of an organisation. Similarly, its execution in organisation will empower the business process and communication language and helps management in directing and controlling their business staff efficaciously.

In addition to this, the strategy in the implementation of the change is management is very necessary to provide a situational awareness that focuses to build a comprehension about the change and its influence on other organisations, attributes and characteristics (Boonstra, 2013). Along with this, it also enables the supporting structure to the organisation by facilitating sponsor and talented and skilful team members. The strategic operation also gives systematic and imperative analysis regarding resistance, special tactics and risks. Furthermore, it is one of the beneficial and critical parts for the successful application of the methods used in the change management. It gives strong judgement ability for the sound decision making and directing the results as per the set objectives (Boonstra, 2013). Moreover, the apt strategy will also define the results in detailed manner as how and who will be influenced by the change in management and in what degrees.

 


Strategies that help in changing the management are deciding the goals before initiating any planning of change. The analysis of old systems should be done profoundly and projected goals are prepared accordingly (Naghibi and Baban, 2011). Additionally, the time of the change should be decided which it’s planning and defined time should be given for its implementation and after measurements of the results. The change in the culture is affected by the change in management thus; it has to be addressed evidently.  The strategy should be based on the short goals and achievement should be celebrated with the each win to cheer and encourage employees to make it a big win effectual. The encouragement in the employees will help the company in finding new ways and innovative ideas to continue the change in management and in a directed way. The communication system is also a vital part of the strategy which should be focused to reach out for the hurdles and opposition by the stakeholders and convince them for the change (Naghibi and Baban, 2011). Admittedly, communication should also necessary for the employees encouragement and providing them vision and goals towards the change of management. The management should always try to achieve its projected goals with little margin of change and modification in the strategy for success.

2.Need for strategic change in the organisation

Every organisation requires improvement in operation and function of its business activities to cope up with the vulnerable changes in the external and internal environment. Persistent improvement in an organisation is the eminent challenge though implementation of new strategies and defeating the resistance (Pablos, et. al., 2016). There are various reasons which require strategic change in the management of an organisation such as to seek out new opportunities in the market. Opportunities may include growth and expansion opportunities and also to attain the competitive advantage in the market. It is the most apt approach to review previous operation with the strategic new goals.

As it narrows the performance gap of the organisation, it supports the management team in proficiency to achieve the objectives and goals of the organisation. In addition to this, internal and external pressures of the organisation are also notable reason for the change. Internal pressure embraces entrepreneurship, management and restructuring of the organisation whereas, globalisation, competition, technology, legislation and economic pressure involves in the external factors (Cameron and Green, 2015). One of the leading reasons for change is the fast and continuous change in the technology in the market. Emergence of new technology forces a company to cater new and innovative products in the market. To escape from crisis in the industry or market is another effect of change of management.

Moreover, it may be also a consequence of static business activities which enforce them to change their management and result in new goals and growth of the organisation. In the same way, changes are the reason for flowing new energy and positive attitude in the organisation. It can be the need to stop the failing products and services in the market provided by the organisation (Pablos, et. al., 2016). Lastly, it can be associated with the acquisitions and mergers recently occurred in the organisation that has affected the organisation negatively. To overcome these negativity and modification in the way of working strategic change management in the organisation is an efficient and effective approach.  

Factors driving the need for strategic change in the organisation

Factors that influence the requirement of strategic change in management are divided into two forces that are External force and internal force. External forces are the pressure outside the organisation which cannot be controlled by the organisation and needs to be addressed for the survival of the organisation (Hussey, 2000). It includes political forces related to temporary environment for an organisation but has a strong effect on its products and services. Economical forces connected with the economy pressure on markets and industry of entire country. Technological force is one of the major pressure arises due to vast competition, companies are seeking for innovative products and better than competitors that led to frequent and rapid change in the technology.

Government forces are the pressure which is different in each country example deregulation, foreign exchange, suspension agreement, antitrust laws and protectionism. Additionally, augmented global competition also constrains any organisation for continuous and fast change of products and services accordingly. Incorporation of information technology is the biggest support for an organisation along with the innovation in products and services through research and development department (Cameron and Green, 2015). Additionally, changes in the customer’s desires, needs and preferences are factors that cannot be controlled by the organisation. Changing trends, fashions and designs influences the choice of the customers as well as vast options are available in the market that confuses and directs their choice of buying.

Internal forces embroils system dynamics with is concerned with the dominant groups of the organisation, integrated technology, informal and formal relationship within the organisation and intrinsic politics influences the organisational change. Furthermore, inadequacy of administrative process related to the rules, regulations and revision of goals and objectives. Likewise, individual/group speculations that meant to be satisfied for the greater productivity and better performance (Hussey, 2000) are also related to the internal forces. Structure focused change is decentralisation, downsizing and job redesigning that effects the cost and profitability of the organisation in a positive way. Other forces are technology change, person focused change, profitability issues and resource constraints that docile the change in management. 

The resources implications of the organisation not responding to strategic change

Effective and systematic implementation of the strategic changes is crucial for any organisation. Coupled with the strong and effective response of the organisation is equally essential. However, if the organisation does not respond properly, it will harm the organisation drastically in terms of loss of market shares, finances, liquidation, and inability of production and loss of employment (Hussain, et al. 2016). Thus, cogent execution of strategic change management is paramount for an organisation to save its resources and future. In financial or economic crisis, strategic change is an essential part and bound to be responded positively by the organisation.

Redesigning and restructuring of the organisation is a must for an organisation for the survival and protection for liquidation in crisis. Furthermore, it is crucial as well as urgent need for a company to complete the change process timely. The attainment of competitive advantage in the crisis is also not possible without addressing the strategic changes of the company effectively (Hussain, et al. 2016). Hence, it can be implicated with the above observation that an organisation should respond to the strategic changes in a positive way to resolve the problems and for the future growth of the organisation.

3.Develop system to involve stakeholders in change

Active participation of team members and employees is a serious aspects while implementation of change management to gain the most out of the strategic change. Stakeholders are the key for success for any organisation without their support it is next to impossible to execute any crucial plan and develop (McCalman, et al., 2015). Nonetheless, if leaders of the organisation plan, organise, establish and monitor the process carefully, the participation of stakeholders can be optimised. Some of the points should be noticed at the time of planning cordially.

Each and every stakeholder should assist and participate in the change of management directly or indirectly. Communication between the management and stakeholders should be sound and coherent. Conclusive orders should be avoided to emerge dissatisfaction among stakeholders. Thus, discussion and suggestions of stakeholders should be welcomed so that it brings commitment and loyalty of the team members (McCalman, et al., 2015). Furthermore, credibility and confidence on the management team by the stakeholders can only be gained if there is a fair transparency and honesty is promoted among them. The accurate reason for change should be communicated to the team members without hiding the details.

While discussion listen to the stakeholders suggestion, follow-up questions and even repeat the information if needed. This will encourage them to share their views plus they will feel important to the organisation. Thus, proper articulation of information is must every now and then in the organisation. In case of any issue between stakeholders and management, try to solve it as early as possible (McCalman, et al., 2015). Convince them to agree on management terms with full consent and acceptance with minute adjustments. Difference in the opinion, feedbacks and comments should also be welcomed and handled properly to avoid the rebelliousness. Communicate and interact with the stakeholders frequently and organise meetings, if necessary. Try to fix it with relating their prospective with the strategic goal and managements goals.

Create a change management strategy involving stakeholders

There are seven steps that have to be followed to create a strategy change management with the help of stakeholders. First, Communication- foremost part of the strategy change integrating stakeholders is to inform them properly about the change and related queries such as need and how to implement these changes in the organisation (Whitley and Glaser, 2014). The methods of communication entail physical interaction, e-mailing, surveys, voting, questionnaire and interviews. Second, Introduction and Invitation- to introduce the strategic change direct meets should be arranged between business heads and top level management.

 


Third, Need- the top management and business head should articulate the reason and strategy behind the change of management in the meeting. Forth, to document the minutes of the meeting along with hard copies of the change management should be circulated among stakeholders and welcoming their reviews on it (Whitley and Glaser, 2014). Fifth, Resolution of issues and change implementation- this involves the solution of feedbacks regarding change and convincing them on importance of change. Finally, Team selection- potential employees should be selected for the team formation concerned with the change management and lead the process effectively and efficiently.

Evaluate the above system

For an organisation stakeholders have a valuable position and no stakeholder should be taken for granted in every stage of change in organisation. The feeling of belongingness and confidence in the management is a product of clear communication by the management to the stakeholders. Along with this, it is very important in the process of change that the stakeholders will be taken seriously and sincerely (Yaeger and Sorensen, 2009). The organisation should always request and accept their reviews to motivate and encourage their participation in the process of change. In addition to this, their queries and concerns are addressed carefully. The aim of the management should be related with the strong comprehension between stakeholders and management regarding goals and objectives of the organisation. There are certain strategies that can ensure the stakeholder participation in the change such as outplacement strategy, containment strategy and engagement strategy.

Engagement strategy- it is a very influential scheme by communicating and convincing the majority of the stakeholders for the change in an organisation. On the other hand, doubtful people will be convinced by this majority of convinced stakeholders. Thus, focus of the organisation to engage maximum people in the process by acceptance and convincing them. Outplacement strategy- this strategy is to eliminate the stakeholders if they are adamant and persistently resist for the change management (Yaeger and Sorensen, 2009). Another is containment strategy- this theory emphasis on the resistance and considering the reasons seriously due to the people behind it may have skills, special knowledge and experience behind it. Thus, the vision and concern for opposition should be looked and adjusted accordingly to add value and correction in the process of change management.      

Create a strategy for managing resistance to change

Although, the feedbacks of the stakeholders may have positive as well as negative reviews on the change management, but can always be handled strategically by the managerial skills and abilities. There are some points which can be enlightened and concerned while handling the opposition of the stakeholders. Foremost is support and encourage the stakeholders by make them realise responsibility towards organisation and motivating them for the change (Sabri and Sabri-Matanagh, 2013). Their confidence and inspiration for the change should be set up, so that they become loyal and commitment towards organisation and sacrifice their personal goals where needed. Next is, dialogue and agreements between stakeholders and management on the resisting matters. The reason for protests should be deal around the table and adjustments from both the sides to resolve the issue should be encouraged.

After that, openness and participation of stakeholders in the strategic change to make it effective should be improved and encouraged. The participation of stakeholders, active or collective, direct or indirect should be vitalised to realise their sense of belongingness in the organisation. Education and communication is the another aspect which should also be highlighted while resolving issues. Misunderstanding and unclear communication leads to most of the tensions in the organisation (Sabri and Sabri-Matanagh, 2013). Thus, the power of good and sound communication should never be underestimated. Effective communication with the help of skilled personnel change management could be elaborated to the stakeholders. Decision making of the stakeholders will be influenced with the diplomatic, cognizant and clear communication to the stakeholder to influence their decision positively.

4.Appropriate model for change

For any successful application of change management it is vital to plan it systematic and step by step. In this regard 5 factors affect are responsible for the success of the implementation of change process (Longmore, 2014). 1) Coherent vision and goal- the planning should be logically arranged and with a view of continuity and sustainability. It will also help in achieving competitive advantage, thus requires consistency. 2) Human resource management- stakeholders are the important part of the change thus treated as valuable assets. They are being motivated and inspired to achieve the organisational goal which helps in promoting their loyalty and commitment towards organisation. 3) Leadership is a very crucial aspect of the organisation which making any change in the organisation.

 


A good leader is always acts as a role model for its followers. Likewise, management is very much responsible to provide suitable environment to the stakeholders and team members to adopt the change by establishing sense of direction and responsibility towards the organisational goals achievement (Longmore, 2014). 4) Linking strategic and operational changes to make the implementation of the changes more flexible and commuting towards strategic goals. 5) Reviewing the environment, internal as well as external factors that influence the change decision will be checked accordingly. 

Implementation of model for change

To commute the strategy goals and make stakeholders realise after results of the change management will help the implementation more effectively and fast. Despite that management and decision makers of the organisation should always acknowledge about the merits and demerits of its execution in the organisation (Reed and Bogardus, 2015). Some point should be reviewed twice before applying it in the organisation at the time of planning by the decision makers. The complete plan comprising strategies theories schedules and stages of change should analyse properly. The stakeholders should be convinced and their acceptance should be focused to attain the majority. The role of stakeholders should be communicated effectively and the whole application should be explained efficaciously.

Once the execution of the change is done successfully, stakeholder must be motivated and inspired with rewards and benefits. Along with this, implementation is a long term process and hence needs a special attention through training facilities for stakeholders as well as team members (Reed and Bogardus, 2015). Records and accounting of the whole change process will be done. Moreover, throughout adjustments in the strategies should be done with the requirement and need. Lastly, Evaluation of the progress will be measured again to acknowledge the position and direction to reach strategic goal.  After control and monitoring of the whole change process should be programmed by the management for optimum effectiveness.

Appropriate measures to monitor progress

Some of the famous performance measure to ensure the progress supervision is as follows:

The first measure is review and evaluation of the performance in which the progress should be watched time to time by the management. The reviews will be always matched with the projected goals and objectives of the organisation (Remme, et al., 2008). It will evaluate the weaknesses in the strategy on time and corrective measures can be taken accordingly.

Furthermore, 180 and 360 degree method is to monitor the performance individual as well group members (Remme, et al., 2008). It is basically used for the rewards and bonus to the employees according to their performance in the process of change management.

Balanced scorecard is another way to evaluate the performance and progress encompassing the financial, growth, business functions and learning factors that decides the organisation strategic goals and its achievement (Remme, et al., 2008). It also includes the prospective of customer in deciding the ultimate performance of the organisation.

Conclusion

From the above discussion it can be implicated that the change management is based on some of the main factors that decides its successful complementation in the organisation. Foremost is the planning which defines the need and requirement of the change influenced by intrinsic and explicit factors. Second is communication of the strategic change to the team members and stakeholders of the organisation. Along with this, it is crucial to ensure the involvement of the stakeholder’s active participation in the process of change. Moreover, it has been done with the systematic and logical way if opposition is being faced on the change. Lastly, there are some methods to review the performance and make it effective and successful for a long time.

 

References

ASL, G. 2015. Organizational Change Management Strategies in Modern Business. IGI Global.

Cameron, E., and Green, M. 2015. Making Sense of Change Management: A Complete Guide to the Models, Tools and Techniques of Organizational Change. 4th ed. Kogan Page Publishers.

Cummings, T. G., and Worley, C.G. 2014.Organization Development and Change.10th ed.Cengage Learning.

Graetz, F., et al. 2012. Managing Organisational Change. 3rd ed. John Wiley & Sons.

Griffin, R. W., and Moorhead, G. 2011. Organizational Behaviour. 10th ed. Cengage Learning.

Hiatt, J. 2006. ADKAR: A Model for Change in Business, Government, and Our Community. Prosci.

Hussain, S. T., et al. 2016. Kurt Lewin's process model for organizational change: The role of leadership and employee involvement: A critical review. Journal of Innovation and Knowledge.

Hussey, D. E. 2000. How to Manage Organisational Change. Kogan Page Publishers.

Kotter, J. P. 2012. Leading Change. Harvard Business Press.

Longmore. 2014. Tackling the Wicked Challenge of Strategic Change. Author House.

McCalman, J. et al. 2015. Change Management: A Guide to Effective Implementation. 4th ed. SAGE.

Pablos, O., et. al. 2016. Advances in Human Resources Management and Organizational Development. IGI Global.

Reed, S. M. 2017. A Guide to the Human Resource Body of Knowledge. John Wiley & Sons.

Reed, S. M., and Bogardus, A. M. 2015. PHR / SPHR Professional in Human Resources. John Wiley & Sons.

Remme, J.et al. 2008. Leadership, Change and Responsibility. Meyer & Meyer Verlag.

Sabri, S., and Sabri-Matanagh, S. 2013. Organizational Development and Strategic Change. Academics Publishing.

Simms, H. 2008. Organisational Behaviour and Change Management. Select Knowledge Limited.

Talloo, 2007.  Business Organisation & Management. Tata McGraw-Hill Education.

Whitley, R., and Glaser, J. 2014. Organisational Transformation and Scientific Change: The Impact of Institutional Restructuring on Universities and Intellectual Innovation. Emerald Group Publishing.

Yaeger, T. F., and Sorensen, P. F. 2009. Strategic Organization Development: Managing Change for Success. IAP.

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