Exploring Corporate Strategy - Gulf Collegegulfcollege.edu.om/moodlepdf/business/BLB10089-6/SU...

From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999

Exploring Corporate

StrategyFIFTH EDITION

Johnson & Scholes

Chapter 11MANAGING STRATEGIC CHANGE

PRENTICE HALL EUROPE


Exhibit 11.1 A framework for managing strategic change

Types of strategic change

Diagnosing strategic

change needs

Managing strategic change

processes

Roles in the change process

Symbolic

processes

Communicating

change

Change tactics

Political

processes

Styles of

managing change

Structure and

control

Changing

routines


Incrementalchange

Transformationalchange

Proactive Tuning Plannedtransformational

Reactive Adaptation Forcedtransformational

Exhibit 11.2 Types of strategic change

NATURE OF CHANGE

MANAGEMENT

ROLE


Exhibit 11.3 ‘Unfreezing’ and the management of change

Unfreezing

mechanisms

Experimentation

Organisational

anticipation

Organisational flux

Information building

Refreezing (the signalling

or confirmation of change)Sustaining change

Questions and challenges

‘Felt need’ for change

Competing views of causes

of problems and remedies

Information collection

Political ‘testing’ of support

New ideas tested out

Early signals made sense of

within paradigm

Political pressures not to

‘rock the boat’

Attempts to reconcile

competing views within

current paradigm

Information made sense of

within paradigm

Resistance to new ideas

ORGANISATIONAL

‘SYMPTOMS’

PRESSURES FOR

CONFORMITY

STAGES

or


Forces for change

Client-focused organisation and

closeness to clients

Flexible approach and structure

Change is normal

Informality and networking

Working hard

Fun place to work

Forces acting against change

Job evaluation as 'core'

Individualism of consultants

Complacency about change

Lack of co-ordinated information

Inadequate induction processes

Over-complicated structure

Too many meetings and memos

Individual, not team, incentives

and controls

Exhibit 11.4 An example of forcefield analysis (based on the Hay cultural webs)


The zone of

comfortable debate (ZOCD)

The zone of

uncomfortable debate

(ZOUD)

Core

assumptions:

The paradigm

Exhibit 11.5 The zone of uncomfortable debate (ZOUD)Source: Adapted from C. Bowman ‘Strategy workshops and top team commitment to strategic change’, Journal of Managerial Psychology, Vol. 10 (1995) pp. 42-50


STYLE MEANS/CONTEXT BENEFITS PROBLEMS CIRCUMSTANCES OF

EFFECTIVENESS

Education and Group briefings assume Overcoming lack of Time consuming

communication internalisation of strategic (or mis)information Direction or progress

logic and trust of top may be unclear

management

Collaboration/ Involvement in setting the Increasing ownership Time consuming

participation strategy agenda and/or of a decision or Solutions/outcome

resolving strategic issues process May improve within existing

by taskforces or groups quality of decisions paradigm

Intervention Change agent retains Process is Risk of perceived Incremental or non-crisis

co-ordination/control guided/controlled manipulation transformational change

delegates elements of but involvement

change takes place

Direction Use of authority to set Clarity and speed Risk of lack of Transformational change

direction and means of acceptance and ill-

change conceived strategy

Coercion/edict Explicit use of power May be successful in Least successful Crisis, rapid

through edict crises or state of unless crisis transformational change

confusion or change in established

autocratic cultures

Incremental change or

long-time horizontal

transformational change

Exhibit 11.6 Styles of managing strategic change


TYPES OF RITUAL ROLE EXAMPLES

Rites of passage Consolidate and promote social roles Induction programmes

and interaction Training programmes

Rites of enhancement Recognise effort benefiting organisation Awards ceremonies

Similarly motivate others Promotions

Rites of renewal Reassure that something is being done Appointment of consultants

Focus attention on issues Project teams

Rites of integration Encourage shared commitment Christmas parties

Reassert rightness of norms

Rites of conflict reduction Reduce conflict and aggression Negotiating committees

Rites of degradation Publicly acknowledge problems Firing top executives

Dissolve / weaken social or political roles Demotion or 'passing over'

Rites of sense making Sharing of interpretations and sense Rumours

making Surveys to evaluate new practices

Rites of challenge 'Throwing down the gauntlet' New CEO's different behaviour

Rites of counter-challenge Resistance to new ways of doing things Grumbling

Working to rule

Exhibit 11.7 Organisational rituals and culture change


MECHANISMS

ACTIVITY

AREAS RESOURCES ÉLITES SUBSYSTEMS SYMBOLIC KEY PROBLEMS

Building the Control of resources Sponsorship by an Alliance building Building on Time required for

power base Acquisition élite Team building legitimation building

of/identification Association with an Perceived duality of

with expertise élite ideas

Acquisition of Perceived as threat

additional resources by existing élites

Overcoming Withdrawal of Breakdown or Foster momentum Attack or remove Striking from too low

resistance resources division of élites for change legitimation a power base

Use of Association with Sponsorship/reward Foster confusion Potentially

‘counter-intelligence’ change agent of change agents conflict and destructive: need for

Association with questioning rapid rebuilding

respected outsider

Achieving Giving resources Removal of Partial Applause/reward Converting the body

compliance resistant élites implementation and Reassurance of the organisation

Need for visible collaboration Symbolic Slipping back

‘change hero’ Implantation of confirmation

‘disciples’

Support for ‘Young

Turks’

Exhibit 11.8 Political mechanisms in organisations


COUNTERMOVES TO CHANGE

Divert resources

Exploit inertia

Keep goals vague and complex

Encourage and exploit lack of organisational

awareness

‘Great idea - let’s do it properly’

Dissipate energies

Reduce the change agent’s influence and credibility

Keep a low profile

Exhibit 11.9a Political manoeuvres and change


COUNTERING COUNTERMOVES

TO CHANGE

Establish clear direction and objectives

Establish simple, phased programming

Adopt a fixer - facilitator - negotiator role

Seek and respond to resistance

Rely on face to face

Exploit a crisis

Co-opt support early

The meaningful steering committee/task force/project

team

Exhibit 11.9b Political manoeuvres and change


Overly rich

communication

causes confusion

EFFECTIVE

COMMUNICATION

Routine communication

for routine change

Rich communication

for complex changes

Too little information and

sensitivity leads to mistrust

and lack of commitment

ComplexRoutine

CHANGES

Face to face

(one to one or group)

Interactive

(e.g. telephone, video

conferencing)

Personal 'memoing'

(e.g. tailored memos, letters)

General bulletins

(e.g. circulars, announcement

on notice boards)

TYPE

OF

MEDIA

Exhibit 11.10 Effective and ineffective communication of changeSource: Based on R.H. Lengel and R.L. Daft, ‘The selection of communication media as an effective skill’, Academy of Management Executive, vol.2, no. 3 (1988) pp. 225–232


Goals

1. Sensitivity to changes in key

personnel, top management

perceptions and market conditions

2. Clarity in specifying goals

3. Flexibility in responding to

changes

Roles

4. Team building abilities

5. Networking skills

6. Tolerance of ambiguity

Communication

7. Communication skills

8. Interpersonal skills

9. Personal enthusiasm

10. Stimulating motivation and

commitment in others

Negotiation

11. Selling plans and ideas to others

12. Negotiating with key players

Managing up

13. Political awareness

14. Influencing skills

15. Helicopter perspectives

Exhibit 11.11 Fifteen key competences of change agentsSource: From D. Buchanan and D. Boddy, The Expertise of the Changing Agent: Public performance and backstage activity, Prentice Hall, 1992, pp. 92-3


SYMPTOMS OF STRATEGIC DRIFT

Highly homogenous paradigm/culture

Strong power blockages to change

Lack of market information

Little toleration of questioning/challenge

“We’ve tried this before and it didn’t work”

Deteriorating performance

Reliance on price/cost /competition


CHANGE AND THE LEARNING

ORGANISATION

Learning Organisations:

Are not hierarchies

Encourage processes which unlock the knowledge of individuals

Encourage sharing of information and knowledge

So that each individual:

becomes sensitive to changes around them and helps identify

opportunities and required changes

becomes capable of taking an holistic (strategic) view of its

environment rather than a functional or operational view

avoids power plays and blocking routines

works on the basis of a shared vision of the future

supports other organisational members

can cope with ambiguity and contradictions


MAPPING REQUIRED CHANGEFROM

WHAT IS

TO

WHAT IS NEEDED


SYMBOLIC PROCESSES IN

MANAGING CHANGE

Symbolic activity includes:

the use of rituals

changes in organisational systems

changes in physical aspects of work environments

the behaviour of leaders and change agents

organisational stories

language and terminology


MANAGING EVERYDAY ASPECTS OF

STRATEGIC CHANGEFORMAL SYSTEMS

Senior executives

are often over reliant on

structure and control

to effect change

MANAGING Means MANAGING

STRATEGY CHANGE

Managing everyday

aspects of

organisational life

is central to

effecting change

EVERYDAY

REALITIES


CHANGE TACTICS

Timing

triggers and crises

windows of opportunity

signalling time frames

sequencing change activities

Involvement and partial implementation

Achieving short term wins

The use of outsiders


CHANGE

AGENT

CONTEXT

PERFORMANCE

STRATEGY

LEVERS /

MECHANISMS

OF CHANGE


TRANSFORMATION

RestructureRevitalise

Renew Reframe

Illustration 11.1 Gemini’s framework for planned strategic change

Gemini’s four R’s of transformation


Illustration 11.2a Forces blocking and facilitating change in Hay Management

Consulting

Controls

Stories• Rivalry/competition

within organisation

• ‘Lone rangers’

• Working hard

• Fun place to work

• Salary levels

Symbols• Rushing about looking

busy

• Having an office (but

others use it)

• Conferences at

prestigious locations

• Open untidy work

areas

• Job evaluation

terminology

Rituals

and routines

• Consultants are with clients

• Minimal induction process

• Impromptu gatherings and

parties

• Many meetings

• Little bottom-up

communications

• Non-communication

by memo

Paradigm

• Core business is job

evaluation

• Individualism and

autonomy

• Generalist HR expertise

• institutionalised

incremental change

Power• Based on access to clients

• Plus position, expertise and

interpersonal networks

• Meeting individual

billing and selling

targets

• Control job evaluation

procedures

• Financial incentives

Organisation• Complex matrix

• Flexible, responsive to

clients

• Informal networks

• But unclear

accountabilities

(a) The cultural web in 1994


Illustration 11.2b Forces blocking and facilitating change in Hay Management

Consulting

Controls

Stories• Successful Hay

teams

• Working hard

• Fun place to work

• Big change

managers

• Salary levels

Symbols• Informal interaction

styles

• Having an office (but

others use it)

• Few consultants in

office

• Conferences at

prestigious locations

• Open untidy work

areas

Rituals

and routines

• Consultants are with clients

• Excellent induction process

• Bottom-up communication

• Fewer memos

• Fewer meetings

• Info flows across

depts/networks

• Impromptu gatherings

and parties

Paradigm

• Client focus

• Core business = HR

consultancy

• High expertise in HR

• Team orientated

PowerBased on:

• Client management

• Expertise

• Interpersonal networks

• Meeting billing and

selling targets

otherwise high

autonomy

• Team targets

• Team incentives

• Meeting quality

objectives

Organisation• Clear matrix

• Flexible, responsive to

clients


• Clear accountabilities


(b) The cultural web aspired to

Exploring Corporate Strategy - Gulf Collegegulfcollege.edu.om/moodlepdf/business/BLB10089-6/SU...

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