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Task Contents
1 Understand the background to 1.1 discuss models of strategic change
organisational strategic change
1.2 evaluate the relevance of models of
strategic change to organisations in the
current economy
2 Understand issues relating to 2.1 examine the need for strategic change in
strategic change in an an organisation
organisation
2.2 assess the factors that are driving the
need for strategic change in an organisation
A company must identify the sources of demand for its products and closely analyze the
competitive landscape in which it wants the consumer to prefer its products over those of
competitors.
The company must divide potential customers into segments and find ways to best satisfy
them. Each segment may require a distinct marketing mix.
Deliver Value
While satisfying individual consumer segments and gaining market share is important, the
company must add value to be successful in the long term. Strategic marketing planning must
be build on a strong foundation---a company has to deliver a tangible benefit to the
consumers of its products.
In the traditional project cycle the monitoring and evaluation was done towards the end of the
project. This model changes that by considering on-going monitoring and frequent evaluation
as vital parts of the implementation stage for a successful project. It's important to recognize
what is working and what needs to be changed on time. As a manager you need to become
strategic and view your project from different lenses. If you focus only the execution part and
the day-to-day tasks, how do you know that the selected project tools are working
effectively? How do you measure the quality of what you are doing? What are your
indicators?
In order to create a strategic management model that will support the current implementation
and the long-term impact of the project start with the following questions:
- How do we measure impact? What qualitative and quantitative indicators exist to back-up
our success?
- Who benefits from our project? Are they winners and are they losers? Why?
In the WCO Compendium the perspectives being handled are limited to two
recognizable and widespread models:
Both models are introduced, although the Organic Change Management model is handled in
more detail. By taking the Organic Change Management model as the foundation, it will be
possible to illustrate the steps needed to start up a change process in order to implement the
strategic action plans.
Strategic planning implies planning for the long-term. In many organizations, the time frame
associated with this type of planning is from three to five years into the future. Due to this
timeframe, there are several challenges associated with long-range planning. These include:
creating a plan that is breakthrough in its orientation rather than ―more of the same,‖ getting
all stakeholders to commit to the organization‘s strategies and to follow through on
implementation of critical activities, and decreasing cycle time in the planning process. In
today‘s world, organizations cannot afford these challenges. To survive, they must be able to
quickly create, deploy, and implement breakthrough strategies that help them to continually
anticipate and meet current and future customer requirements. In doing so, they must be able
to align all internal and external resources around the plan. This sort of orientation
necessitates approaches to strategic planning that involve all employees and stakeholders in
the planning process and a planning process that can occur within a shortened time frame.
Large group intervention techniques have emerged that more quickly effect large-scale
change. As such, they have been effective tools in dealing with some of the issues associated
with strategic planning. These intervention techniques include: Future Search Conferences,
Real Time Strategic Change, ICA (Institute of Cultural Affairs) Strategic process, The
Conference Model, Fast Cycle Full Participation Work Design, Real Time Work Design,
Participative Design, Simu-Real, Work-outs, and Open Space Technology.
These approaches allow organizations to involve anywhere from 30 to hundreds, if not a few
thousand, individuals in working together to accomplish a common outcome. They may come
together for a single day or multiple days or events. In the process of working collaboratively,
the organization can more quickly achieve what Kathleen Dannemiller has coined ―one heart
and one mind‖—a key factor in organizational alignment.
TASK 2: Understand issues relating to strategic change in an organization
Strategic Change means changing the organizational Vision, Mission, Objectives and
ofcourse the adopted strategy to achieve those objectives.
―Strategic change is defined as " changes in the content of a firm's strategy as defined by its
scope, resource deployments, competitive advantages, and synergy"
or
―Strategic change is defined as a difference in the form, quality, or state over time in
organization's alignment with its external environment.‖
Considering the definition of strategic change, strategic change could be affected by the states
of firms and their external environments. Because the performance of firms might dependent
on the fit between firms and their external environments, the appearances of novel
opportunities and threats in the external environments. In other words, the change of external
environments, require firms to adapt to the external environments again; as a result, firms
would change their strategy in response to the environmental changes. The states of firms
will also affect the occurrence of strategic change. For example, firms tend to adopt new
strategies in the face of financial distress for the purpose of breaking the critical situations.
Additionally, organizations would possess structural inertia that they tend to keep their
previous structure and strategy.
The reason for this failure is the inability of the organization to deal with Change. When
installing a new application or implementing a new customer service initiative, most
organizations view the installation or implementation as the end-point in the initiative. When
things start to go awry after implementation, individuals within the organization start to
believe that the decision to proceed with an initiative was wrong and start trying to return to
their old ways. Although this can be true, more often than not they don‘t realize that by
implementing they are now forced to BEGIN a process of Change. “Change Is About
People; and People Hate Change”
What most organizations forget is that the benefits of a new system, a new org structure and
new approach to the business are not realized until people change their behavior. A change in
behavior cannot be realized until AFTER the initiative has been implemented. In other words,
Change begins with an Ending. Paradoxical as this might seem, every change involves giving
up something and taking a leap of faith into the unknown.
The time between the change and the realization of the results of that change is what William
Bridges calls the ―neutral-zone‖1 and what I call the realization gap. This is the time between
the implementation and the realization of the benefits of the change. Most initiatives are
given up because organizations don‘t see the gap for what it is; the transition between the old
world and the new.
2.2 Assess the factors that are driving the need for strategic change in an
organization:
Organizational change management includes processes and tools for managing the people
side of the change at an organizational level. These tools include a structured approach that
can be used to effectively transition groups or organizations through change. When combined
with an understanding of individual change management, these tools provide a framework for
managing the people side of change. People who are confronted by change will experience a
form of culture-shock as established patterns of corporate life are altered, or viewed by
people as being threatened. Employees will typically experience a form of "grief" or loss.
Following are some of the factors that are driving the need for strategic change in an
organization:
External
o Changes in competitive forces
o Regulation/deregulation
o Changes in customer expectation
o Changes in standards
o Technology changes
Internal
o Performance dips
o Changes in the management team (particularly the chief executive)
Grundy (1993) further suggests that when a number of factors converge major change can
crystallize. For example, internal performance may be flagging; external competitive
pressures may be increasing; and at the same time a new CEO wants to put his/her stamp on
the organization. Where these influences coincide ―a wave of change‖ can be produced which
managers find difficult to cope with.
2.3 Assess the resource implications of the organisation not
responding to strategic change
Human-based competences and human resource management which aresome keys for the
long term organizational competitive advantage, doesn‘t respond much to strategic change.
Because HR department of an organization is the main part and its processing need not to be
changed frequently, although the employees may change.
A strategic human resource management system (HRMS) must allow the adaptation of
human resource management practices and the knowledge and behavior of the employees as
regards the immediate needs of the organization, which are shown in its organizational
strategy. On the other hand, a human resource management system must promote the
development of a dynamic organizational capability that generates agile responses to the
needs of current organizational strategy. In brief, the SHRMS must facilitate strategic
flexibility with the goal of reaching a dynamic fit and adequately answering the requests of
the strategy and the environment. Human resource management must explore how the
integration and complementarities of resources, practices and organizational capacities
facilitate the achievement of the competitive advantage for the organization. Then we must
analyze how human resource architecture can shape human resource systems and practices
towards the development of organizational competitive capacity. Here the concepts of
internal fit and external fit are really useful.
Task 3: Be able to lead stakeholders in developing a strategy for change
Stakeholders are those who have rights or interests in a system. If you are concerned with the
future of a system – the stakeholders are those you should worry about. For an organisation,
for example, stakeholders are any group or individual who can affect, or is affected by the
achievement of the organisation‘s purpose. This definition is too broad for some as it includes
interested parties as well as affected parties. Some prefer to restrict the term to those who
have a ‗stake‘, claim or vested interest – those who provide something of importance to the
organisation, and expect something in return.
Once stakeholders have been identified, their interests, characteristics and circumstances need
to be better understood. At this stage it is particularly important that stakeholders express
their own concerns. A checklist of questions for each stakeholder group might include:
For this useful methodologies are there which must be followed for bringing a strategic
change.
Brainstorming to generate ideas and issues within a stakeholder group. This takes the
form of a session in which ‗anything goes‘ - with all points recorded. Later these
points can be sorted and prioritised. Focus groups can then be convened with
particular stakeholders to discuss particular topics.
Semi-structured interviews in which an informal checklist of issues is used to guide
an interview with a stakeholder group, whilst allowing other issues to arise and be
pursued. This approach is particularly useful for cross-checking, identification of
common ground, identification of tradeoffs and identification of decision-making
frameworks of stakeholders.
Digging up existing data – a variety of recorded materials may shed light on
stakeholder‘s interests, characteristics and circumstances. It is always worth probing
and rummaging for reports and recorded information, there is almost always more of
it than at first appears, sometimes found in the most unlikely places.
Time lines can be prepared with stakeholders of the history of links and impacts of
particular policies, institutions and processes, with discussion of cause and effect of
various changes.
Diagrams help many people to get a quick idea of what is planned or talked about.
They can work well to stimulate discussion by both non-literate and literate people. In
general diagrams and visualisations work because they provide a focus for attention
while discussing an issue, represent complex issues simply, stimulate ideas and
therefore assist in decision-making. Of course, some people do not think or work well
in terms of diagrams and prefer verbal discussion with descriptions of real examples
and stories.
readily accessible
respect for sensitive information
structured to facilitate engagement
Early and Ongoing Stakeholder Consultation
founded on well developed and communicated plan
consultation well defined
o purpose
o any pre-conditions for consultation
o affected stakeholders
issues prioritized
carefully selected engagement methodologies
clearly identified responsible individuals both within the program and
project levels
document consultation process, feedback and actions and feedback to stakeholders
Create Urgency: For change to happen, it helps if the whole company really wants
it. Develop a sense of urgency around the need for change. This may help you spark
the initial motivation to get things moving.
This isn't simply a matter of showing people poor sales statistics or talking about
increased competition. Open an honest and convincing dialogue about what's
happening in the marketplace and with your competition. If many people start talking
about the change you propose, the urgency can build and feed on itself.
Form a Powerful Coalition: Convince people that change is necessary. This often
takes strong leadership and visible support from key people within your organization.
Managing change isn't enough – you have to lead it.
You can find effective change leaders throughout your organization – they don't
necessarily follow the traditional company hierarchy. To lead change, you need to
bring together a coalition, or team, of influential people whose power comes from a
variety of sources, including job title, status, expertise, and political importance.
Once formed, your "change coalition" needs to work as a team, continuing to build
urgency and momentum around the need for change.
When you first start thinking about change, there will probably be many great ideas and
solutions floating around. Link these concepts to an overall vision that people can grasp
easily and remember.
A clear vision can help everyone understand why you're asking them to do something. When
people see for themselves what you're trying to achieve, then the directives they're given tend
to make more sense.
The process of determining local performance measures and performance outcomes should
be transparent and readily available to the public. The performance results for each
participating program should also be open for review, as businesses, workers, and jobseekers
all need to know what services work. Further, taxpayers should be informed of the extent to
which the expenditure of public funds yields outcomes beneficial to the community.
Providers and other partners that do not meet performance standards or advance the system's
goals and objectives should receive technical assistance to improve their service delivery. If
these organizations or individuals do not achieve better results, they should be sanctioned and
ultimately dropped from the public workforce system. Funds should be tied to performance
measurements which account for the particular challenges of working in different
communities. Indeed, WIA permits job candidates to use training vouchers to select industry-
recognized training or education programs that have been designated eligible training
providers by local WIBs and the state because they have proven results.
References
1. Matsuno, K., & Mentzer, J. T. (2000), ―The effects of strategy type on the market
orientation– performance relationship‖, Journal of Marketing, Vol.64, pp.1 –16.
2. Gonzalez- Benito Oscar & Gonzalez- Benito Javier (2005), ―Cultural vs. operational
market orientation and objective vs. subjective performance: perspective of
production and operation‖, Journal of Industrial Marketing Management, Vol. 34, No.
8, pp.797-829.
3. http://reviews.zdnet.co.uk/software/productivity/0,39024195,39158410,00.htm
4. http://www.ces-vol.org.uk
5. http://www.ces-vol.org.uk
6. Andersen, E.S., Grude, K.V., and Hang, T. 1995. Goal Directed Project
Management: Effective techniques and strategies (trans. From Norwegian by Roberta
Wiig), 2nd edn. London: Kogan Page.
7. Appelo, J. 2009. What is the Mission of Your Project? Retrieved May 12, 2009, from
www.projectsmart.co.uk